A customer paid for my services with used equipment. What do I report?
Bartering Services for Equipment: Tax Records. A specific owner scenario, the facts that change the answer, and the records needed for a tax review.
Tax Strategy Blog: Page 12
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We used the seller's bank account for a month after closing. How do we untangle it?
Reconstruct the cash activity from the closing cutoff and identify the legal owner of each receipt and obligation.
We stopped operations but still hold equipment for sale. Is this the company's final tax year?
Business Stops Operating but Keeps Equipment for Sale. A specific owner scenario, the facts that change the answer, and the records needed for a tax review.
The seller keeps receivables but I collect them. Are deposits my sales?
Collection responsibility does not by itself determine ownership of the income.
The customer list we bought is outdated. Can we stop amortizing it and deduct the balance?
Replacing a Customer List Bought With a Business. A specific owner scenario, the facts that change the answer, and the records needed for a tax review.
Tax Planning Before Signing a Business Sale Letter of Intent
Before signing a business sale LOI, compare deal structure, allocation, cash proceeds and review responsibilities with your tax advisor and deal counsel.
Selling Your Business but Keeping the Building: Tax Planning
Keeping the building after a business sale? Review lease cash flow, passive losses, NIIT and QBI, with records for the sale year and the year after closing.
Can One of My Businesses Have a Cash Balance Plan?
Own several businesses? Review related employers, employee coverage and funding before adding a cash balance plan to one company.
Buying a Second Practice: Coordinate Entities, Staff and Cash
Before buying a second medical or dental practice, coordinate acquisition structure, retirement plans, owner income and opening tax records.
Buying Out a Practice Partner: Tax Review Before Agreement
Buying out a dental or medical practice partner? Compare direct purchase, redemption and a final-owner LLC buyout, including basis and final-return records.
Why a Cost Segregation Tax Estimate Needs a State Review
Ask how cost segregation affects each state return. Keep federal and state depreciation schedules separate when modeling usable tax benefits.
What to Do After a Cost Segregation Study Is Finished
Turn a completed cost segregation report into an organized CPA handoff with asset reconciliation, filing assignments, and open questions.
Which Rental Property Should You Study First?
Prioritize cost segregation across your rental portfolio using records, usable deductions, hold periods and total implementation costs.
How Land Allocation Affects a Cost Segregation Study
Review land allocation before cost segregation. Organize valuation support and reconcile the property purchase before using a depreciation estimate.
Why can repayment of my shareholder loan create taxable income?
Track the original advance, prior repayments, loss-related basis reductions and any later basis restoration.
When does rental depreciation begin if renovations delay tenants?
Build a timeline from closing through renovation completion, approvals, marketing and readiness for the intended rental use.
What should I verify before implementing a cost segregation report?
Match the taxpayer, property, supported basis, excluded land, acquisition costs and improvements to the final report version.
What should I do when an owner expense report includes personal charges?
No. Profitability does not create a business deduction for personal spending.
What should I do after contributing too much to a business retirement plan?
Provide the administrator the plan document, compensation, deposits and contribution sources.
What should Form 7203 reconcile to in my owner tax file?
The form should connect opening basis, K-1 items, contributions, distributions and qualifying shareholder debt activity.
What should an owner include in a midyear tax projection?
Request current books for each company and property, year-to-date payroll, known investment events and prior carryforwards.
What records should I give my CPA for a depreciation correction?
Request detailed depreciation reports from every preparer involved, including disposals, elections and carryforward schedules.
What records should I give an actuary for a cash balance plan proposal?
Provide employee ages, compensation, hire dates, hours and ownership relationships across companies.
What is a Section 481(a) adjustment supposed to reconcile?
For the eligible method change, compare the amounts reflected under the old method with those under the proposed method at the required transition point.
What happens to S corporation losses suspended for lack of basis?
Maintain the original loss amount, year, limitation and subsequent utilization for each corporation.
What happens if I keep some cash in a 1031 exchange?
Ask the preparer to show realized gain, recognized gain and deferred gain separately.
What evidence should I keep for an S corporation salary review?
A useful file explains the owner's work, the market evidence used and the reason the selected wage fits.
Should my S corporation salary change when profit doubles?
Compare the current year with the year used in the last compensation review.
Should I track stock basis separately for each S corporation?
Create a separate basis schedule for each ownership interest and reconcile it annually with K-1s, contributions, distributions and relevant adjustments.
Should I reserve tax money from revenue or from profit?
No. It can support cash discipline, but taxable profit and the household projection determine the actual funding need.
Should I choose a 1031 exchange solely to avoid this year's tax?
Model the sale without an exchange alongside the proposed replacement acquisition.
Should furniture already on my asset schedule appear again in a cost segregation study?
It should not create duplicate basis or deductions. Reconcile the schedules and identify one supported treatment for each cost.
Should a real estate agent elect S corporation status after a strong commission year?
Start with net commission income after ordinary operating expenses, rather than gross closings.
Should a cash balance plan be based on one unusually profitable year?
Ask the actuary to show required funding under several profit scenarios and explain how employee costs change.
Is replacing a rental roof a repair or an improvement?
Obtain the contractor's detailed work description and distinguish patching from a substantial replacement or restoration.
Is Form 3115 always required when depreciation was missed?
No. The facts and accounting-method history determine the appropriate correction route.