Business Tax

A condominium is different from a house in many respects. For instance, condos typically do not have a yard or basement. Instead, condo owners share land, lobbies, elevators, stairs, pools, and other service areas. As such, owners generally pay dues or assessments to a special corporation that is organized to manage the common areas.

Are condo common area expenses deductible?

The short answer is that common area expenses are not deductible if the condo is being used as personal property. However, if the condominium association makes a capital improvement to the property, the owners can add their pro-rata share of the expense to their cost basis. It is important to save the supporting documentation detailing the nature of the improvement since it will be incorporated in your capital gains tax calculation when you eventually sell the condo.

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Question:
I’m not sure about the weight issue for depreciating a van or truck. Does the 6,000 pounds of “gross vehicle weight” mean loaded or unloaded weight for trucks and vans? Is that the same as GVWR (gross vehicle weight rating)?

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Estimated corporate taxes for the 3rd payment of the 2015 tax year are due on September 15th.  This also applies at the state and local level. These taxes must be paid by the due date to avoid interest & penalties. Below are the specific details.

Requirement: Deposit the third installment of your estimated corporate income taxes to avoid interest, penalties & a big tax bill at the end of the year.

Who Must Pay: Corporations must generally make quarterly estimated tax payments if it expects the estimated tax for the year to be $500 or more for the tax year.

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Excel is a powerful tool used by accountants to summarize financial information. Join accountant Greg Freyman as he reveals the steps involved in summarizing financial information accounting in excel. If you have any questions, please contact us.

Question:
We borrowed $100,00 from our LLC, which is taxed as a partnership. We now have a new partner and we have forgiven the loan. How is a forgiven partnership loan treated from a tax perspective on the 1065 and 1040?

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Question:
We are an S Corporation with a fiscal year end of September 30th. Is there a way that the existing S Corporation shareholders can take distributions to pay the estimated income taxes, and the new shareholders would not take distributions until next year? Can this be done without breaking the S election?

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Question:
I need to dissolve a NYC S corporation. I think there are additional steps that need to be taken into consideration. Please advise.

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Commuter passes are generally an IRC Section 132(f) fringe benefit. This means that they’re treated as a pre-tax contribution and excluded from income on the W-2 Form. These commuter programs can provide a great tax saving benefit to both the employee and the employer. If your company is interested in learning how commuter benefit programs work, there are a few points to keep in mind.

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We have suspended passive activity losses associated with our rental property. If we sell one of the rental properties, can we claim those losses?

The short answer is that it depends on a few factors. However, it’s likely that the suspended passive activity losses can be claimed as there will be a complete liquidation of the taxpayer’s entire interest in that single rental activity.

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So you took that leap of faith, and started your own business! What does this mean to the typical entrepreneur? For most of us, running your own business means that you are responsible for paying your own individual income tax liability throughout the entire year in quarterly installments. Moreover, payroll taxes aren’t always automatically withheld from a W-2 form as is the case for most traditional employees.

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