Individuals
If an investment is sold at a loss and then repurchased within 30 days, the initial loss cannot be claimed for tax purposes
Wash Sale
Number of classes of stock an S Corporation is allowed
One
Compensation to members of a partnership in return for time invested, services provided, or capital made available
Guaranteed Payment
Allows you to give away up to $16,000 in 2022 to as many people as you wish without those gifts counting against your lifetime exemption
Annual Exclusion
The most famous protest of taxation by the American colonies
Boston Tea Party
An immediate expense deduction that business owners can take for purchases of depreciable business equipment subject to dollar and cost limitations
Section 179 Expense
The first tier used to determine the tax treatment of distributions when the corporation has AE&P
Accumulated Adjustment Account
A partnership must allocate income and loss, with respect to property contributed to take into account any variation between the adjusted tax basis of the property and its fair market value at the time of contribution
Section 704 (c) Adjustment
Allows married couples to divide the value of a gift between them to double their allowed annual exclusion
Gift Splitting
Famous smart person that said "The hardest thing in the world to understand is the income tax.”
Albert Einstein
Offer tax benefits to investors who elect to temporarily defer tax on capital gains if they timely invest those gains appropriately
Qualified Opportunity Zones
Starts with the initial capital contribution to the S corporation or the initial cost of the stock they purchased. That amount is then increased and/or decreased based on the pass-through amounts from the S corporation.
Stock Basis
An election that allows a partnership to adjust the basis of the property within a partnership when there is a distribution of partnership property or certain transfers of a partnership interest
IRC Section 754 Election
For estate purposes, all estate assets are valued six months after the date of death
Alternate Valuation
Number of states that do not charge their citizens an income tax
Seven
When a 1031 Exchange is opened in the later part of the year, and completed in the succeeding tax year
Straddle
It’s a special federal tax imposed on an S corporation after conversion from a C corp. The tax applies to appreciated assets and profit attributable to assets received by the S corporation on the date of conversion
Built-in Gains Tax
Property transfer from a partner to a partnership followed by a cash distribution from the partnership to a partner (or vice versa)
Disguised Sale
This tax prevents you from deliberately omitting your children in your estate plan in favor of younger generations.
Generation Skipping Tax
Texas tax on strip clubs, peep shows, and nude dancing. The revenue from the tax goes to sexual assault victims and health insurance for the poor.
Pole Tax
You open a new traditional IRA, make non-deductible contributions, and then convert it into a Roth IRA
Back Door Roth IRA
The subsidiary must be a domestic corporation that would otherwise qualify as an S corporation, the parent S corporation must own 100 percent of the stock of the subsidiary, and the parent must make an election
Qualified Subchapter S Subsidiary (QSUB)
The amount of any money/property received by a selling partner in exchange for all or a part of his interest in the partnership that is attributable to unrealized receivables, substantially appreciated inventory or depreciation recapture
Hot Asset Rule
Unlimited gift tax exclusion is allowed for amounts paid directly for these expenses
Medical or Tuition Payments
If you want to save money on taxes call
Tobin & Collins