How To Depreciate Foreign Rental Property

Question: We purchased personal use foreign property in July 2012 for $300,000. On 1/1/14, the property was converted to rental use. It was rented out for three months in 2014. For purposes of setting up this rental property to calculate depreciation, should I use the exchange rate as of July 2012 or 1/1/14? Also, can […]

How Can We Pay No Capital Gains Tax?

Question: I’m 52 years old and my spouse is 42 and we have $100,000 in annual income. We have a $120,000 in publicly traded stock that we would like to sell that have been held over 1 year. If we sold it all today, our capital gain would be $96,000. If they maxed out their […]

Can S Corporation Shareholders Take Unequal Distributions

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? Answer: In […]

How To Dissolve a NYC S-Corporation in 2015

Question: I need to dissolve a NYC S corporation during 2015. I think there are additional steps that need to be taken into consideration. Please advise. Answer: New York lawmakers recently implemented the most significant tax reform since the 1940s. What’s more, many of these changes go into effect starting in the 2015 tax year. […]

Should I Exercise My Stock Options?

Question: I have some stock options and I’m trying to figure out the best plan of action in exercising. Answer: Do you know what type of options you have (i.e. Non-Qualified Stock Options “NQSO” or Incentive Stock Options “ISO”)? Your strategy depends on quite a few factors, but perhaps the below information can get you […]

How Commuter Benefit Programs Lower Taxes

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 […]

Are Suspended Passive Activity Losses Deductible?

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 […]