What is the purpose of a repatriated tax break, and why is it so controversial?

June 30, 2024 No Comments

A: In 2004, Congress passed the American Jobs Creation Act in an effort to boost the economy. One of the results of the act was the implementation of a repatriated tax break, which gave U.S. multinational corporations a one-time tax break on money earned in foreign

What is the tax impact of calculating depreciation?

June 30, 2024 No Comments

A: Depreciation is a method used to allocate the cost of tangible assets or fixed assets over the assets’ useful life. In other words, it allocates a portion of that cost to periods in which the tangible assets helped generate revenues or sales. By charting the

What taxes are due on money won gambling in Las Vegas?

June 30, 2024 No Comments

A: Every year, thousands of people travel to gambling hot spots such as the Nevada cities of Las Vegas and Reno with the hope of winning big in a casino. While most of these dreamers’ wallets are thinner on the return trip than when they arrived, a

When am I considered “married” for tax purposes?

June 30, 2024 No Comments

A: You are generally considered married for tax purposes as long as you were married as of the last day of the year, regardless of whether your marriage license has been issued. Your last name is a non-issue, as many married couples file jointly even

What are the pros and cons of a progressive tax policy and who benefits the most from it?

June 30, 2024 No Comments

A: Those who oppose a progressive tax hierarchy are likely to be those who pay more taxes when such a policy is in place. A progressive tax policy requires individuals with higher incomes and wealth to pay taxes at a rate that is higher than

What are the tax implications for both the company and investors in a divestiture from a publicly traded company?

June 30, 2024 No Comments

A: In finance, divestiture is defined as a reduction of a company’s assets as a result of asset closures or the selling of business units, subsidiaries, divisions or assets to other corporations or individuals. A selling company typically receives consideration for assets such as cash,

What are the tax implications of owning a master limited partnership (MLP)?

June 30, 2024 No Comments

A: There are significant tax benefits to owning units in a master limited partnership (MLP), although most investors do not want to hold an MLP interest in an individual retirement account (IRA). Distributions from MLPs to unit holders receive favorable tax treatment under the IRS

What debt cannot be discharged when filing for bankruptcy?

June 30, 2024 No Comments

A: Bankruptcy offers overwhelmed debtors an opportunity for a fresh start through either the liquidation (Chapter 7) or reorganization (Chapter 13) of debt. In both cases, the bankruptcy court is said to discharge the debts. This means that your creditors lose the right to take

What do creditors have to report to credit bureaus?

June 30, 2024 No Comments

A: Creditors are not required by law to report anything to credit bureaus, although many businesses choose to report on-time payments, late payments, purchases, loan terms, credit limits and balances owed. Businesses usually also report major events such as account closures or charge-offs. Governmental organizations

If a LEAP option is purchased and held for more than 12 months, is the tax treatment long term?

June 30, 2024 No Comments

A: A LEAP (long-term equity anticipation security) is a call or put option that allows the holder to buy or sell shares of stock at a set strike price. Expiration dates on LEAPs can range from nine months to three years, which is longer than the holding

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