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Tax Tips Small Business
Thinking of Selling Your Corporation?
Carefully review your options before making a decision
When it come time to sell your corporation, you have two options. You can either sell the corporation stock or have the corporation sell the assets and distribute the proceeds. The tax implications of the two sales are very different. If you choose to sell the stock, you are the seller. The corporation is not affected by the transaction. The new owner steps into your shoes as the shareholder and takes over the existing corporation. If your share of the proceeds exceeds your basis in the stock, you'll have a capital gain to report on Schedule D.
Read more...Small Business Quick Tip
| Instead of deducting the actual expenses for the business use of your vehicle, opt for the standard mileage rate. In 2011, you can deduct 51 cents for each business mile you drive (55.5 cents per mile starting July 1, 2011). |
Tax Tips Personal
Do You Have Debt Forgiveness?
You may not have to include it in income
When you are liable for a loan but can't repay it, some lenders will forgive the debt. What many borrowers don't realize is that this cancellation of debt results in taxable income in the year of forgiveness. The lender usually will issue a 1099-C to report the cancelled debt. If you receive one, don't ignore it. Be sure to give it to your tax preparer and discuss the circumstances surrounding the loan.
Read more...Personal Quick Tip
| Are you planning on making any substantial gifts? Talk to your tax preparer first. Gifts with values exceeding $13,000 must be reported to the IRS. |