Category: Articles
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Foreign-Owned Disregarded Entities: The Hidden Tax Risk for Foreign Property Owners in the U.S.
For years, foreign investors have been purchasing U.S. real estate through Limited Liability Companies (LLCs), often without realizing the tax and reporting obligations that come with it. Many of these investors assumed that since they had no U.S. tax liability, they didn’t need to file anything with the IRS. However, if a foreign individual owns…
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How to Avoid the Net Investment Income Tax With a Corporation
The Net Investment Income Tax (NIIT) is one of the most frustrating “stealth taxes” that many high-income earners and investors face. As a tax accountant with 20 years of experience, I’ve seen firsthand how the Net Investment Income Tax (NIIT) can sneak up on high-income earners and investors. The NIIT was introduced as a way to make…
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Late Election Relief for Entity Classification on IRS Form 8832
Clients frequently reach out on consultations to understand the taxation, liability, and reporting requirements related to entity structuring. For federal tax purposes, LLCs and foreign entities taxed in the US can choose their classification by filing Form 8832, Entity Classification Election. Much can be done to optimize tax positions by filing this form. However, when…
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Essential Financials for Buying or Selling a Business
Buying or selling a business is a complex process that requires thorough financial due diligence. Whether you’re acquiring a company or preparing to sell, having the right financial documentation is crucial to ensuring a smooth transaction. I’ve worked with many business buyers and sellers, and I’ve seen firsthand how deals can fall apart when financials…
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Form a Holding Company as a Tax Strategy?
Guide for Business Owners and Investors As a tax strategist, I often work with entrepreneurs and investors looking for ways to optimize their tax liabilities while protecting their assets. One of the most effective, yet often misunderstood, structures for achieving this is the holding company. When used correctly, a holding company can provide substantial tax…
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The 10 Most Overlooked IRS Tax Deductions for Business Owners
As a tax professional working with business owners for years, I’ve seen too many people leave money on the table by missing out on key deductions. The tax code is complicated, and it’s easy to focus on the obvious write-offs, like rent, payroll, and office supplies, while forgetting about the less obvious ones. But these…
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San Francisco Business Tax 2025 Deadlines: What Businesses Need to Know
San Francisco’s tax framework is designed to fund essential services, from homelessness initiatives to public infrastructure, but its complexity often leaves businesses scrambling. Here’s a snapshot of the critical dates: Notably, while businesses can request an extension to file taxes until April 29, payments are still due by February 28. Failure to pay on…
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Future IRS Tax Rules for DeFi Transactions and Digital Asset Sales
The U.S. Treasury Department and the Internal Revenue Service (IRS) have officially released final regulations, TD 10021, that significantly impact decentralized finance (DeFi) transactions. These regulations establish mandatory reporting requirements for certain digital asset transactions through Form 1099-DA. Published on December 27, 2024, these guidelines seek to align DeFi transaction reporting with traditional securities practices…
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Navigating Tax Changes in 2025: What to Expect
Last week the Ways and Means Committee released an outline of potential adjustments to U.S. tax policies for 2025. Below is a detailed exploration of the proposed changes, organized by key areas of impact. Tax Adjustments for Families and Education SSN Requirement for the Child Tax Credit (CTC)Reinstating the Social Security number requirement for CTC…
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Guide to 2025 IRS Disaster Tax Relief
The last year has been nearly apocalyptic when it comes to natural disasters affecting us. Several hurricanes that flooded vast areas, flooding and tornadoes in many parts of the country, then the massively destructive fires in California, where January is normally the rainiest month, not fire season. I’m from Los Angeles, and at least 11…