#tax
Tax strategies, planning, and compliance for individuals and businesses
Section 267 disallows losses on sales between related parties and defers deductions on accrued payments to related cash-basis payees. A practical guide to who counts as related, how constructive ownership works, the 267(d) gain offset, the 2.5-month payment safe harbor, and the bookkeeping habits that keep family businesses and partnerships audit-ready.
How Section 514 of the Internal Revenue Code taxes leveraged investments held by 501(c)(3) organizations, private foundations, and self-directed IRAs — including the debt/basis percentage calculation, Form 990-T mechanics, the 12-month look-back on sale, and the Section 514(c)(9) real estate exception for schools and pension trusts.
Section 988 of the Internal Revenue Code makes foreign-exchange gains and losses ordinary, not capital. Importers, exporters, and remote workers paid in euros or pounds get full ordinary-loss deductions with no $3,000 cap, a same-day election to convert forward-contract gains to capital, and a $200 per-transaction de minimis exception for personal travel currency.
How the IRS Section 263(a)-3 tangible property regulations decide what small businesses can deduct now versus capitalize over decades — with the three safe harbors ($2,500/$5,000 de minimis, the small taxpayer building rule, and routine maintenance), the BRA test, and the unit-of-property trap that drives most mistakes.
When two spouses each fill out a default W-4, their employers withhold as if each job were the household's only income — causing systematic under-withholding. Step 2 of the 2026 W-4 closes that gap with three options: the checkbox, the Multiple Jobs Worksheet, and the IRS Tax Withholding Estimator.
Every barter trade creates taxable income equal to the fair market value of what you receive. Record it as a paired sale and expense through a barter clearing account, then report it on Schedule C—including 15.3% self-employment tax—and watch for Form 1099-B from barter exchanges.
For most businesses, credit card cash back and points are non-taxable rebates, not income—but a bonus with no spending requirement is taxable. Spending rewards also reduce your deductible expenses, so record them as a contra-expense to keep deductions accurate.
A timely Form 12153 filed within 30 days of IRS Letter 3172 or LT11/L-1058 triggers a Collection Due Process hearing under IRC Sections 6320 and 6330 — suspending levy action, preserving Tax Court appeal rights, and giving small business owners a statutory chance to negotiate installment agreements, lien withdrawal, innocent spouse relief, or offers in compromise before the IRS drains the operating account.
An F reorganization under IRC Section 368(a)(1)(F) lets an S corporation restructure tax-free into a holding-company/QSub form so a buyer gets an asset basis step-up at any ownership percentage and sellers can defer tax on rollover equity.
Brokers often report a wrong or zero cost basis on Form 1099-B, especially for RSUs and ESPP shares. This guide explains covered vs. noncovered securities, Box 1e and Box 5, and how Form 8949 adjustment code B corrects basis so you do not pay tax twice on the same income.
Form 1099-B Box 1e shows your broker's cost basis, but Box 5 determines whether the IRS sees it. A working guide to covered vs. noncovered securities, Form 8949 adjustment codes (B, W, Q, O, T), and the RSU/ESPP basis corrections that prevent double-taxation.
Box 7 of Form 1099-R holds a one- or two-character code that decides whether a retirement distribution is taxable, penalty-free, or hit with a 10% early-withdrawal penalty. This guide explains every numeric and letter code, including the new Code Y for qualified charitable distributions, and the coding errors that overcharge taxpayers.
