The tax rules for incentive stock options (ISO) are complex. Using an example will help to understand the tax treatment of ISO.
Once upon a time, any “hybrid vehicle” would qualify the owner for a generous income tax credit and give the owner authorization to drive in carpool lane without a passenger, without fear of getting a ticket. Current Tax Benefits But now in 2019, in order to get both of these favorable benefits, the owner [...]
Many investors, including some novices, have a good understanding of what mutual funds are and how they work. However, the tax implications of these funds may baffle even sophisticated investors. One such baffling implication is that you might owe tax in a year in which you did virtually nothing except watch your account grow. What [...]
Borrowing from your closely held corporation may seem simple, but without proper planning it can be painfully expensive. The IRS often reviews such loans to determine if they’re merely disguised cash withdrawals. For example, the IRS may retroactively treat an improperly structured loan as a dividend, which would be taxable to you and not deductible [...]
When should you start planning for retirement? Many people start saving in their 20’s but it is never too early or too late to start. Fortunately the tax law provides subsidies to help people save for retirement. Below are 10 ideas for you to consider as you are either starting your journey, towards the end, [...]
Most S Corp. owners realize there are some challenges that must be considered in order to maintain their S-election. I have focused on corporations that have been treated as S corporations effectively since formation in this article. The S Corporation election can be inadvertently terminated in several ways. But with some preplanning and some prompt action [...]
A few years ago a “hybrid vehicle” would qualify the owner for an income tax credit and give the owner authorization to drive in the carpool lane without a passenger, without fear of getting a ticket. Current Tax Benefits But now in 2013, in order to get both of these favorable benefits, the owner of [...]