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The Tax Provision And The Tax Cuts And Jobs Act: Complimentary Training Webinar For Tax Professionals

Nick Frank, Instructor, Tax Provision Webinar

On Friday, July 20th 2018 TaxConnections invites tax professionals working in corporate tax departments to learn from nationally recognized tax provision instructor Nick Frank. After working with sophisticated tax software in Big Four and a Fortune 500 company, Nick developed a program to simplify the tax provision process.

For those of you who have attended his previous webinars through TaxConnections invitations, you now understand why Nick is such a fantastic instructor of the corporate tax provision. After personally interviewing thousands of tax professionals responsible of the corporate tax provision, and learning the pain tax professionals experienced preparing the tax provision, it was important to identify a solution that makes life easier for tax professionals.

If you have not had the opportunity to participate in one of Nick Franks tax provision webinars, please do so with our compliments. All you need to do is register here, show up and take great notes.

If you are unable to make this last part in the series, and want to register for the next 4 part series, register for this one today and we will invite you to the next series to learn all four parts.

 

 

Income Shifting Strategies To Help Business Owners Become More Tax Efficient

Haik Chilingaryan, Tax Lawyer, Tax Savings For business Owners

This segment discusses different strategies that can potentially help a business owner become more tax efficient. Some methods include the restructuring of a business and establishing tax-deductible retirement plans.

Synopsis

The concept of characterization of income (or shifting of income) may result in the preservation of significant wealth. One method of shifting of income is through retirement planning. Another method is the restructuring of a business entity.

Retirement Planning

If the taxpayer is working and participating in a 401K with his employer, or he has an IRA, meaning it’s funded entirely by the taxpayer, the money that goes into such accounts may save him on taxes.

When the taxpayer puts money in such plans, he decides that instead of paying taxes now, he will instead pay taxes when he take those funds out, preferably when his tax brackets are likely to be reduced at his retirement. That’s because his total taxable income is likely to be lowered since he is no longer working, thereby lessening his income tax obligations.

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Vice President of Taxation, Reports To CFO (Connecticut)

VP Tax Job

We are currently seeking a Vice President Tax with the experience and vision to lead and develop a strong global tax team. This key role will oversee the global tax function of our clients global finance organization and executive team. We are looking for a leader who can successfully head the tax function of a public listed company leading cross-functional teams that support domestic and international operations. The successful candidate must be financially savvy, detail-oriented and organized, with good business judgment and strong communication & leadership skills, as well as the ability to build trustworthy relationships with staff, business partners and employees at all levels globally.

Vice President Tax Responsibilities:

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Want To Find A Tax Job? – View Abraham Lincoln’s Resume

Kat Jennings, Find Tax Job, Tax Recruiter

Three types of tax professionals have their Professional Profiles in TaxConnections Worldwide Directory of Tax Professionals:

1) Tax Professionals Creating Higher Visibility/Authority
2) Tax Professionals Developing New Business
3) Tax Professionals In Transition

When a tax professional is looking for a new tax opportunity and registers to Find Tax Jobs, the first thing they receive is a series of messages that coaches members through the process of attracting key decision-makers to them.

Everything has changed about finding a tax job and if you do not know how to navigate the process you are at a huge disadvantage. Having personally placed thousands of tax professionals throughout my tax search career, I know how it works more than anyone. I see every mistake people make and want to reach out and help all of you through what is often a heartfelt process. I genuinely want every tax professional to succeed as my life work has been about helping you. Never give up-follow us and we will show you the way.

Today, I give you a bit of inspiration that I must credit to the smcsafetyfoundation.org. They were kind enough to send it to me and now I share this with each and every one of you.

ABRAHAM LINCOLN’S RESUME

1831 – Failed in business

1833 – Defeat for Legislature

1833 – Second failure in business

1836 – Suffered nervous breakdown

1838 – Defeated for Speaker

1840 – Defeated for Elector

1843 – Defeated for Congress

1848 – Defeated for Congress

1855 – Defeated for Senate

1856 – Defeated for Vice President

1858 – Defeated for Senate

1860 – ELECTED PRESIDENT

My path was worn and slippery. My foot slipped from

under me, knocking the other out of the way. But I

recovered and said to myself, it’s a slip and not a fall.

~ Abraham Lincoln, 16th U.S. President

 

 

Tax Reforms Impact On Business Entities: C- Corps, Pass-Throughs

Haik Chilingaryan, C- Corps, S-Corps, Tax Lawyer

Prior to tax reform, the C-corporation tax rates ranged from 15 to 35 percent. Under the new law, there is a 21% flat rate. Also under the new law, there is this new deduction known as the Qualified Business Income deduction that is available for Pass-Through Businesses.

Synopsis

The Tax Cuts and Jobs Act of 2017, otherwise known as the GOP tax reform bill, largely went into effect on January 1, 2018. If utilized properly, the new law can be significantly beneficial for business owners. To understand how the new laws can be beneficial for business owners, it’s important to be familiar with the two types of businesses that can have an impact on the taxation of a business entity.

Taxation Of A Business Entity

One way is for the entity to be structured as a C-corporation, in which case the income generated from the business may be taxed twice. For example, the corporation gets taxed at the corporate level upon earning a profit, then after the corporation makes a distribution to the shareholders, the shareholders also pay taxes on their individual tax returns. This concept is known as double-taxation. Under the new law, all the C-corporations will pay a 21% tax on their corporate profits.

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July 4th – Independence Day In The United States

Independence Day, also known as the Fourth of July is a U.S. Federal Holiday commemorating the adoption of the Declaration of Independence on July 4, 1776. The Continental Congress declared that the thirteen American colonies at the time (Delaware, Pennsylvania, New Jersey, Georgia, Connecticut, Massachusetts Bay, Maryland, South Carolina, New Hampshire, Virginia, New York, North Carolina, Rhode Island and Providence Plantations) regarded themselves as a new nation, the United States of America, and were no longer part of the British Empire. John Hancock was the first person to sign the Declaration of Independence. Here is what John Hancock said:

“We must be unanimous; there must be no pulling different ways; we must hang together”. ~ John Hancock, July 4, 1776

We want to thank all of our independent author contributors and readers of TaxConnections Worldwide Tax Blogs platform for hanging together. You understand the value of having your tax reputations discovered by a stream of new business clientele. If you would like to be part of our tax blogger platform you can join us as a TaxConnections Member. We will post your tax blogs, too!

 

 

Canadian Corporate Director Residency Requirements

Grant Gilmour, Tax Advisor, Canada

Which provinces and territories allow Canadian corporations to have 100% foreign directors? And 100% foreign owners/shareholders?

In Canada a corporation must have at least one director (see International FAQ #27) but directors are not required to be shareholders. It must also have at least one shareholder. Therefore a company incorporated in Canada does not have to have Canadian resident shareholders, but may have to have Canadian resident directors depending on the province or territory they incorporate in.

The provinces and territories that require at least 25% to be Canadian resident directors. Which effectively limits foreign ownership and control. Canadian directorship is based on residency not citizenship.

  • Alberta
  • Ontario
  • Saskatchewan
  • Newfoundland and Labrador
  • Manitoba
  • Federal

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Gift For Tax Professionals – Best Tax Jokes eBook

Best Tax Jokes eBook, TaxConnections

We know you will enjoy one of the most popular eBooks we provide to our tax professional members. In fact, TaxConnections members have written or provided many of the jokes in this eBook. With more than 111 tax jokes on a wide range of topics, we know you will have a few laughs with your family, friends and clients.

Tax professionals are a lot of fun and have many stories to share. We encourage you to send us your favorite tax jokes and we will include them in future editions submitted by you to promote your services.

Request – TaxConnections Best Tax Jokes eBook

https://www.taxconnections.com/best-tax-jokes-and-quotes

 

Five Fundamentals Of A Limited Liability Company (LLC)

Haik Chilingaryan, Five Fundamentals Of An LLC

A Limited Liability Company (“LLC”) is a hybrid business entity which contains elements of a partnership and a corporation. LLCs consist of members and managers. An LLC may provide tremendous benefits for its members, which include asset protection, intergenerational transfers, tax saving strategies, wealth preservation, flexible management structures, and clarity on the roles of all essential parties involved in the company as set out in the Operating Agreement.

The following five concepts are fundamental for establishing an LLC: Asset Protection, Intergenerational Transfers, Tax Saving Strategies, Management, and Funding.

Asset Protection

Generally, the more assets a person owns in one’s name, the more likely it is that he or she will be a target mark for creditors. This is why it’s good practice to own as little as possible in your own name. In order to accomplish this goal, it’s important to evaluate the types of asset protections tools that are available to you. An LLC is one such tool that is effective for asset protection purposes.

For creditors of the LLC itself, a member’s personal liability will generally be limited to the amount of the member’s investment in the LLC unless the member personally guarantees the transaction in question.

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Who Does Your Financial Advisor Work For?

Joseph Grutta, Financial Planner

Have you ever asked your financial advisor who they work for? Do they truly represent your best interests or those of the firm they work for? Are they acting on your behalf? Is their advice based on a fiduciary standard or a suitability standard? Do you know the difference?

These are very important questions to know the answers to before turning your hard-earned money over to someone to manage on your behalf. For many years, I have encouraged people who are looking for help managing their money to ask questions, lots of questions. One of the best questions you can ask is, “Do you act as a fiduciary?”

What is a Fiduciary Duty?

According to Nolo’s Plain-English Law Dictionary, a fiduciary duty is “a legal duty to act solely in another party’s interests.”1 Parties owing this duty are called fiduciaries. The individuals to whom they owe a duty are called principals. Fiduciaries may not profit from their relationship with their principals unless they have the principal’s express, informed consent. They also have a duty to avoid any conflicts of interest between themselves and their principals or between their principals and the fiduciaries’ other clients.

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Are There Advantages To Owning A Second Home?

Jon Neal, Tax Advisor, Second Home Tax Advantages

Whatever the location, size, or value of a second home, certain tax advantages are built in. However, your opportunity to benefit from them depends on how you use the property.

Personal Use

Both property taxes and mortgage interest are as deductible for a second home as they are for your primary residence — and are subject to the same limitations. If you file a joint return, you cannot deduct interest on more than $1 million of acquisition debt ($500,000 for married persons filing separately) on one or two homes.

Two tax advantages of homeownership are not available for a second home — the immediate deduction of mortgage points when purchasing and the capital gain exemption when selling. Both tax breaks require the home to be your “principal residence.” However, you can deduct the points on your second home’s mortgage over the loan’s term.

Rental Use

More tax advantages become available if you forgo some of your personal use in favor of renting out your second home for part of the year. But there may be drawbacks as well.

If you rent out your home for 14 or fewer days during the year, you do not have to report rental income on your tax return, regardless of the amount, and there is no effect on your mortgage interest deduction. But you cannot deduct any rental expenses.

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Attention Tax Professionals – IRS Releases Draft Tax Forms

Tax Professionals – You Will Want To Review Tax Draft Forms

These are early release drafts of numerous IRS Forms which the IRS is providing for your information, review, and comment. There is a 30-day comment period for these draft forms. Do not file draft forms. Also, do not rely on draft forms, instructions, and publications for filing. The IRS generally does not release drafts of forms until they believe they have incorporated all changes. However, the IRS anticipates it is likely that these drafts will change at least slightly before being released as final. Whether these drafts change or not, the IRS will post new drafts later this summer with the standard cover sheet indicating the IRS does not expect the draft to change. Forms generally are subject to OMB approval before they can be officially released.

Early release drafts are at IRS.gov/DraftForms, and may remain there even after the final release is posted at IRS.gov/LatestForms.

 

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