The controversial Alternative Minimum Tax (AMT) was enacted by Congress in 1969 to target the rich.  AMT initially targeted taxpayers with incomes over $200,000 who did not pay any, or paid very minimal, federal taxes.  Over time, however, AMT has picked the pockets of many unintended taxpayers.  Key parts of the AMT regulations are not indexed for inflation, such as the AMT exemption.

Last week we discussed how your share of partnership or S-Corporation income impacts your basis in your ownership interest.  This week we will take a look at how debt can affect your basis.  While the calculation of basis for partnerships and S-Corporations has many similarities, the treatment of basis as it relates to liabilities and debts of those entities is very different.

A cost segregation study is an in-depth analysis of the costs incurred to build, acquire, or renovate a real estate holding.  IRS tax law requires these building costs to be depreciated over 27.5 or 39 years, depending on the usage of the facility.  However, by identifying personal assets within overall building costs, those identified assets can qualify for shorter, accelerated depreciation periods.  These assets typically can be depreciated over five, seven, or 15 years and include such things as carpeting, wall covering, portions of an electrical system, and exterior site improvements, a

Has your CPA ever asked for your basis in the partnership interest, or S-Corporation stock, you own?  Did you hesitate to answer because you were not sure what he or she meant?  In addition, you may be asking yourself why it is important.

When it comes to starting a business, cost is a key factor in most decisions. Business owners begin researching where to buy the most cost-efficient materials or what wage is appropriate to pay employees. With so much emphasis placed on making decisions in order to generate the most profit, one choice that is often overlooked is the best way to structure the business to achieve the greatest tax benefit as well.