(For the tax preparation of single member limited liability companies, partnerships, and C corporations click here, here, and here respectively.) S corporations seem to have become many taxpayers chosen business entity without understanding almost any of the basic tenets of their taxation. This is nothing against those that form them, and more about the fact [...]
(For the tax preparation of single member limited liability companies, S corporations, and C corporations, click here, here, and here, respectively.) In the realm of tax law, a partnership exists when two or more people come together to form a business with the goal of making a profit. One example of this is a business [...]
(For tax preparation of partnerships, S corporations, and C corporations, click here, here, and here respectively.) There is a lot fanfare around limited liability companies. Everyone seems to have one, whether you’re a dog walker or a welder, a baker or a banker, a taxidermist or a taxi driver. The point is limited liability companies [...]
This article is partially about what happens when your student loan debt is cancelled by the lender, meaning, your bank basically “calls the debt off” so-to-speak, while the briefer second part of this post goes into the potential taxability that occurs when your student loan debt is repaid by someone else, including a company or [...]
What comes to mind when you think of a college or a university? Well, there are students, classes, professors, and of course, loans. As anyone with student debt can attest to, it has to be paid back with interest. This is a reality that hits many college graduates hard when they step into the real [...]
(For my post on the American opportunity credit see here.) This post will go into the details of another educational tax credit that can significantly lower your total tax bill – the lifetime learning credit. As stated in the previous post about the American opportunity credit, the general way federal education credits work centers on [...]
(For my post on the lifetime learning credit see here.) The American opportunity credit is one of the federal tax credits offered for educational expenses. It bears a reminder that tax credits diminish the total tax you pay on a one-to-one basis, so, for example, a $500 tax credit is literally $500 extra dollars in [...]
Are scholarships and grants subject to the federal income tax? The answer is sometimes. The non-taxability of a scholarship really depends on four factors: 1) whether the recipient of a scholarship or grant is enrolled in a degree program at an eligible educational institution; 2) the scholarship or grant doesn’t represent payment for work performed; [...]
Economics, as it relates to a person’s life, is multifaceted. And, it’s not always related to money. For example, if time is the scarcest resource, how do you use it? Does happiness matter? And, how about success? Should you focus on it? If happiness and success matter, how do you allocate your time? Or, what’s [...]
With tax season over, one of two scenarios likely occurred: You either got a refund that's currently greasing your wheels, or you had to dig into your pockets to pay what you owed. Maybe this was by design, but then again, maybe it wasn't. Whether you owed money, didn't get a big enough refund or [...]
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