Posts by Tyee

Meals are not necessarily Entertainment

You may have heard that in the Tax Cuts and Jobs Act (TCJA), passed in December of 2017, there was a prohibition put in place against entertainment expenses. Historically, there was a deduction allowed of up to 50% of those entertainment expenses that were otherwise an ordinary and necessary business expense. However the TCJA removed…

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What is Partnership Taxable Income?

Partnerships or LLCs taxed as partnerships, don’t pay federal income tax.  Instead we say they “flow through,” the income to their owners.  So what do we mean, when we use the phrase, “Partnership Taxable Income?”  There is a statutory definition to this phrase, but that definition is generally not what we are talking about.  I…

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What does the GAAP revenue recognition standard mean for your software company?

As an owner of a small privately owned software company, you may have heard about the new revenue recognition standards issued by FASB (Financial Accounting Standards Board) in Topic 606 Revenue from Contracts with Customers. This may matter to you if you have GAAP reporting requirements for banking or other needs.  Your tax return position may…

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Old trick, new rule – The end of Bottom Dollar Guarantee

Tax basis is important for partners in a partnership because: It determines if a distribution is taxable It determines if there is a gain on selling your partnership interest It determines if a partner can deduct “flow-through” losses For all of the above reasons, partners would generally prefer to have a higher tax basis in…

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Don’t let your foreign sub invest in US property

…that is, unless you don’t mind picking up US taxable income that may otherwise be deferred. If you have a Controlled Foreign Corporation (CFC), then you may be benefiting from some income deferral.  Generally the income earned by a CFC is not taxable in the US until it is paid to the US owner as…

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Multidimensional Tracking

When you hear “multidimensional tracking” you might think about complex databases and crunching numbers, or perhaps you are a little on the eccentric side and your mind wanders to the wormholes of the universe. Since our purpose is to explain how this tracking method can boost your accounting proficiency and provide you with more insight…

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