Sciarabba Walker Blog
The information in these blog posts is provided for general informational purposes only and is not intended to substitute for accounting, tax, or financial advice from a professional accountant. While we use reasonable efforts to furnish accurate and up-to-date information, we do not warrant that any information contained in or made available through this blog is current or error free. No part of this communication is intended to be used for the purpose of avoiding penalties under U.S. federal tax law.
Totalization Agreements: Avoiding Dual Taxation When Working Abroad
The United States has almost 70 tax treaties with foreign countries covering income taxes and capital gains tax. These treaties delineate which country is entitled to tax an individual or entity in cross-border situations. But income taxes are only part of the tax...
Saving tax on restricted stock awards with the Sec. 83(b) election
Many employees receive stock-based compensation from their employer as part of their compensation and benefits package. The tax consequences of such compensation can be complex and subject to ordinary-income, capital gains, employment and other taxes. But if you...
The TCJA changes some rules for deducting pass-through business losses
It is not uncommon for businesses to sometimes generate tax losses. But the losses that can be deducted are limited by tax law in some situations. The Tax Cuts and Jobs Act (TCJA) further restricts the amount of losses that sole proprietors, partners, S corporation...
New IRS Tool Provides Helpful Information for Donating to Charities
In a previous blog post, we provided guidance on checking charity legitimacy before donating to help hurricane and other natural disaster victims. We discussed the official IRS website tool, Select Check, to determine if the charity is registered, which was useful but...
Be aware of the tax consequences before selling your home
In many parts of the country, summer is peak season for selling a home. If you’re planning to put your home on the market soon, you’re probably thinking about things like how quickly it will sell and how much you’ll get for it. But don’t neglect to consider the tax...
Owning a Foreign Subsidiary: What Else Is Required?
As we have discussed in previous posts, while owning a foreign subsidiary has its advantages, it also presents complicated tax issues. We've analyzed the fictional relationship of U.S. Parent and foreign Sub and discussed the check the box rules, transfer pricing...
Do you need to adjust your withholding?
If you received a large refund after filing your 2017 income tax return, you’re probably enjoying the influx of cash. But a large refund isn’t all positive. It also means you were essentially giving the government an interest-free loan. That’s why a large refund for...
Form 5471: What Category Do You Fall Under?
As mentioned in our previous posts, there are several U.S. tax reporting requirements for our fictional U.S. company “Parent” once it acquires our fictional foreign subsidiary “Sub.” As we discussed in our first post in this series, one of the Parent’s options is to...
Transfer Pricing: The Case for an Arm’s Length
In our previous post we discussed the initial considerations that fictional U.S. company “Parent” need to make after acquiring fiction subsidiary “Sub.” After the initial considerations are made and Sub is up and operating, the pricing of intercompany transactions...
Tax document retention guidelines for small businesses
You may have breathed a sigh of relief after filing your 2017 income tax return (or requesting an extension). But if your office is strewn with reams of paper consisting of years’ worth of tax returns, receipts, canceled checks and other financial records (or your...