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Education as a competitive advantage.
There is something to be said about a tax professional who is on top of the latest tax law changes and strategies. Your clients can sense you know what you are doing. And you spend less time while making fewer mistakes during the busy season.
Choosing your tax update partner is an important decision. While some may look at CPE as a nuisance, the quality of your yearly update will help you service your clients better, improve referral rates and increase billing rates.
ClientWhys provides the most comprehensive coverage of our ever-changing and evolving tax laws, regulations, rulings, filing procedures and troublesome areas, such as the Health Care provisions, debt relief and foreclosure, and the constant line up of new provisions each year.
One of the more complicated, misunderstood and often-violated tax issues is the interest tracing rules. Even though you can encounter some complicated situations, the tracing rules are generally summed up as follows:
Where a taxpayer receives payments for losses, damages, adjustment of purchase price, etc., for a capital asset (Sec 1221), those payments are not taxable to the extent the basis of the capital asset can be reduced (IRC Sec 1016(a)(1)). However the basis can only be reduced to zero and any amount in excess would represent a capital gain.
A little known tax benefit for new qualified small businesses is the ability to apply a portion of its research credit, but no more than $250,000, to pay the employer’s share of the employees’ FICA withholding requirement (the 6.2 percent payroll tax). That can be quite a benefit, since in their early years, start-up companies generally do not have any taxable profits for the research credit to offset, and quite often it is the early years when there are expenditures that will qualify for the research credit. This can substantially help the cash flow for these young companies.