Category: B
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Business Entities
Business Entities Business Entities Content Tax Planning for Corporations and Shareholders This section explores some details of Tax Planning for Corporations and Shareholders in relation to business entities taxation in the United States. Tax Planning for Partners, Partnerships and LLCs This section explores some details of Tax Planning for Partners, Partnerships and LLCs in relation…
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Below-market Loan
About Below-market Loan: Also called Below-market-rate loans. A loan that provides for no interest or for interest at less than the statutory federal rate (applicable federal rate, AFR). Such loans are generally recharacterized using the AFR, which will cause the lender to have constructive income t…
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Built-in Gain
. Built-in Gain and Built-in Loss 1. any unrealized gain (loss) attributable to appreciation (depreciation) in the value of all assets held by a C corporation that elects to become an S corporation. See also built-in gain tax. Former IRC (check <a href="http://lawi.us/internal-revenue-code-provisio…
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Brackets
. Bracket Creep The edging into higher tax brackets that occurs as income rises with inflation. Bracket creep increases government revenue without tax increases. The Tax Reform Act of 1986 virtually ended bracket creep by taxing individuals in only two brackets beginning in 1988 and adjusting the b…
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Bingo Winnings
. Bingo Winnings and Losses They the prizes won or the losses suffered in bingo games. Bingo winnings are taxable income; bingo losses may be used to offset winnings, but a net loss is not deductible. Former IRC (check if this IRC provisio…
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Big Four
About Big Four: Big Four (audit firms): See Big Four (audit firms)…
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Below Par
About Below Par: at a price below the face, or nominal, value of a security, especially a bond. Generally, the difference between the price paid and the amount received upon sale or maturity is taxed as a capital gain. See also Capital Gain in the American Lega…
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Bona Fide
Bona Fide (latin legal term) means:Latin for “in good faith;” that is, without fraud or deceit; genuine. Former IRC (check if this IRC provision is current here) §357(b)(l)(B)….
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Bargain Sale
About Bargain Sale: generally, the sale of property for less than fair market value. A bargain aile to a charitable organization is treated as partly a charitable contribution deduction . and partly a sale or exchange. The basis of the property sold must be allocated between the portion “sold” and t…
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Business Property
About Business Property: generally, any property used in a trade or business that is not a capital asset. Business Assets are assets used for purposes of carrying on a business. Business property includes assets specifically excepted from capital asset status, such as: • inventory. • prope…