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

July 7, 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?

July 7, 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

Where do deferred tax liabilities come from?

July 7, 2024 No Comments

A: A deferred tax liability is the result of differences in the way a company does its financial accounting for reporting purposes according to generally accepted accounting principles (GAAP) versus tax accounting. The deferred tax liability represents an obligation to pay taxes in the future.

Who needs to fill out IRS Form Schedule B?

July 7, 2024 No Comments

A: Taxpayers who receive more than $1,500 in taxable interest and/or ordinary dividends during the year are required to fill out IRS Form Schedule B, which accompanies IRS form 1040. Schedule B requires the taxpayer to provide the name of each payer (such as an investment firm or

Why are some spin-offs taxable and some are tax-free?

July 7, 2024 No Comments

A: The manner in which a parent company structures the spinoff and divests itself of a subsidiary or division determines whether the spinoff is taxable or tax-free. The taxable status of a spinoff is governed by Internal Revenue Code (IRC) Section 355. The majority of

Why are the Cayman Islands considered a tax haven?

July 7, 2024 No Comments

A: The Cayman Islands are one of the most well-known tax havens in the world. Unlike most countries, the Caymans don’t have a corporate tax, making it an ideal place for multinational corporations to base subsidiary entities to shield some or all of their incomes

Why is Andorra considered a tax haven?

July 7, 2024 No Comments

A: Andorra is one of many locations around the globe considered a tax haven because of its relatively lenient tax laws. However, as of 2015, pressure from the European Union has prompted the Andorran government to increase taxation, making it less of a haven than

Why is it beneficial to use Net Operating Profit After Tax as opposed to net income when making an investment decision?

July 7, 2024 No Comments

A: It is more beneficial to use net operating profit after tax, or NOPAT, as opposed to net income when making an investment decision because a company’s NOPAT is a measure of profit that excludes the cost and tax benefits of debt financing in that

Why is it that under some circumstances, capital expenditure cannot be tax-deducted all at once?

July 7, 2024 No Comments

A: Current tax laws do not allow the vast majority of capital expenditures to be fully tax-deducted for the year in which the expenditures occur. Businesses may be opposed to such tax regulations, preferring to be able to deduct the full amount of their cash

Using QDRO money from a divorce to pay for a new home

July 7, 2024 No Comments

A: There are several issues to consider: The early distribution penalty: Assets distributed from a qualified plan in accordance with a qualified domestic relations order (QDRO) are exempted from the usual 10% early-withdrawal penalty. So if you are under age 59½ and want to use any

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