I have an installment sale for the sale of a partnership interest. The total price is $800,000 payable over 10 years, with no stated interest. I will report this using the installment method and impute interest. However, I'm unsure if section 483 (unstated interest) or section 1274 (OID) applies to impute the interest, as mentioned in IRS Publication 537, page 12. Which section applies?

September 23rd, 2024

I received a cash settlement from a class action lawsuit against a brokerage firm. How do I report the settlement for income tax purposes?

May 20th, 2023

I was let go from a large company in April 2013 and received 24 weeks of severance, paid biweekly through the end of September. In May, I obtained a job with a similar but separate company affiliated with my previous company. On the day of my last severance payment, the payment was reversed, and I was informed that I was not entitled to severance because I worked at a company which 'indirectly or directly provides services' to my former company. I am repaying $13,300 in seven installments - $1300 now, and $2000/month beginning in January. I've been told this means I will receive a W-2 indicating that $12000 as income for 2013; will I receive something in 2014 to show that I have paid this money back? How can I make sure I am not taxed twice on this money (or taxed at all, actually, since I will end up returning it all to my previous company)?

December 10th, 2024

When the assets of a sole proprietorship are 'converted' to use in a new Sub S corporation, is the value of those assets booked in the new entity at fair market value or book value from the old entity?

November 29th, 2024

If I work as an independent contractor through an LLC for a job abroad, would I be subjecting myself to double taxation with Holland and my state of residence?

August 15th, 2024