July 2017 Tax & Business Alert

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WHY YOU SHOULD (OR SHOULDN’T) PURSUE AN ACQUISITION

M&A activity tends to wax and wane. Nonetheless, billions of dollars continue to change hands annually, and an acquisition can be a great way to grow a business. So owners should be prepared if one of these deals comes their way. This article explores some pros and cons to consider.

LEASING PROPERTY TO YOUR BUSINESS MIGHT TRIGGER UNDESIRABLE TAX CONSEQUENCES

A business owner who also owns real estate may be tempted to lease that property to the company. Unfortunately, for owners of pass-through entities, doing so may trigger the “self-rental rule” and might lead to negative tax consequences. This article explains the details of the self-rental rule plus a way to avoid triggering it.

WHICH TYPE OF MORTGAGE LOAN MEETS YOUR NEEDS?

Few purchases during one’s lifetime will be as expensive as buying a home. That’s why, when considering a mortgage, it’s important to know what specific type of loan is the best choice. This article looks at the two major choices: fixed-rate and adjustable-rate.

KNOW YOUR TAX HAND WHEN IT COMES TO GAMBLING

A royal flush can be quite a rush. But the IRS casts a wide net when defining gambling income. This brief article outlines the tax impact of gambling winnings for casual players and how the rules differ for professional gamblers.

TAX CALENDAR

This calendar notes important tax deadlines for the third quarter of 2017.

Facebook IRS Request Fails

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Facebook’s IRS document request suit fails because the claim didn’t match FOIA request. A district court has denied Facebook’s motion to compel the IRS, based on the Freedom of Information Act (FOIA), to provide the social media giant with documents about the IRS’s audit of the company. The court held that Facebook’s claim in its complaint didn’t match its FOIA request to the IRS and, thus, Facebook didn’t “exhaust its administrative remedies.” In FOIA cases, a party must exhaust administrative remedies before that party can seek judicial review.

Court rules on taxpayers’ disposal of partnership interests

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The U.S. Tax Court has upheld the IRS determination that two brothers’ losses on the disposal of partnership interests weren’t ordinary abandonment losses, as they claimed on their returns, but rather were capital losses. The court also rejected the brothers’ argument that they received proceeds from the sale, which were used to acquire an intangible asset they were entitled to amortize. This argument was “contrary to the unambiguous terms” of the partnership agreement.

Have Questions? We’re Here All Year!

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Many clients see their CPAs at tax time when the primary focus is on completing and filing their tax return. As a result, they may not take the opportunity to ask questions about long-term tax planning or other significant financial concerns. The good news is that we are available to you all year. We have a full-time, year-round staff of experts with extensive expertise in a broad range of financial areas. We’re ready when you are to take some time reviewing your financial situation, helping you understand your options and make the best decisions. We’re also here in an emergency to help address unexpected financial concerns. So, give us a call to discuss your substantial financial issues whenever they arise.