1. IRS Form 8594 for Sale of Business

    Most businesses are made up of different types of assets, and those assets get different treatment for tax purposes. How those items are identified at the time of the sale/purchase can have a significant tax impact on both the buyer and the seller. A seller will, of course, want to designate items into classes that will yield a long-term capital gain on sale and thus provide the best tax result fr…Read More

  2. Health Insurance Deduction for S Corporation Owners (2% Shareholders)

    The cost of health insurance premiums paid by a business is usually excluded from taxable income on the employee’s W-2.   However it should be noted that a 2% or more shareholder of an S corporation is not eligible for this exclusion!  However, the 2% shareholder can often deduct the cost of the premiums on his or her personal tax return (form 1040). So what is a 2% S Corp shareholder? The IRS…Read More

  3. Orange County California Manufacturing and R&D Equipment Exemption

    Overview Beginning on July 1, 2014, manufacturers and certain research and developers may qualify for a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases. To be eligible for this partial exemption, you must meet all three of these conditions: Be engaged in certain types of business, also known as a “qualified person.” Pu…Read More

  4. Automobile Deductions for LLC’s and S Corps

    Deciding whether or not to have your LLC or S-Corp own a vehicle is a common question. There are several ways to handle automobile deductions and we'll first look at the option of the business owning the vehicle. Company Owned Vehicle If the company truly owns the vehicle, then it must be titled to the company. Generally having your name AND the company's name is OK. This might be a challenge with…Read More

  5. California Apportionment Changes 2013

    Per the CA FTB Website: Single Sales Factor Election to Taxpayers Meeting Special Apportionment For taxable years beginning on or after January 1, 2011, and before January 1, 2013, apportioning taxpayers are allowed to elect to apportion their income using the single sales factor. Proposition 39 now requires the use of the Single Sales Factor method of apportioning income to be used for tax years …Read More