Tag Archive for tax help

Canadian FAQ #204 – Balance Sheet Series

Grant Gilmour

Tax Question:

What are the most common groupings of Asset and Liabilities on a Balance Sheet?

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TaxConnections Connects CEOs, CFOs, VPs With Tax Experts Worldwide

Kat Jennings

TaxConnections is excited to announce we will be releasing Taxexpedia, an updated version of Ask Tax Questions, to the world of Tax CEOs, CFOs, and VPs during the 4th quarter of 2016. We will be helping management of organizations, large and small, connect with tax experts who can assist them with a wide range of tax problems.

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Are You Dealing With South African Tax, Legal and Financial Questions?

Africa Tax Legal Financial Questions

We have good news for anyone conducting business in South Africa. One of our super smart tax experts, Dr. Daniel Erasmus recently acquired the Africa Tax, Law and Finance Hub and is offering complimentary access to the site for a limited time only.

We highly recommend you go view our tax professionals video section and scroll down to meet him in the video presentation he has on TaxConnections. If you have any business operations in South Africa, Dr. Erasmus is extraordinarily knowledgeable on the subject. Read more

Tax Preparation Questions To Ask Yourself

Milton Boothe

When you leave your tax preparer’s office each year, there are two very important questions you should probably be asking yourself.

Question #1:

How secure is your personal information after you leave it with your tax preparer? Probably not very secure! Do they leave your paperwork lying about the place, accessible to all, after they have completed your taxes? Are their computers adequately protected by firewalls and effective anti-virus software? Is there adequate background checks done on their employees, who obviously will have unlimited access to your sensitive personal information? The honest truth is that you really don’t know.

Also, you should be concerned about hackers. These criminals have been successful in hacking into supposedly very secure government computer systems; the Office of Personnel Management, and even the IRS itself come to mind immediately. These people know that they will have access to a treasure trove of personal information if they were to hack into the computers of H&R Block, Liberty Tax, or any CPA or other tax preparation office. So what is to stop them from hacking into your tax preparer’s computer, which obviously will be a lot less protected than the government’s computers? Read more

Happy New Years Video From TaxConnections

Happy New Year 2016

A 2016 Happy New Years From TaxConnections! Enjoy This New Year’s Video:

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Israel/South Africa Expatriates Face Costly New Tax Rules

Israeli Flag

In terms of the Right of Aliyah doctrine (the right of every Jew to immigrate to Israel) every Jew going to or intending to go to Israel will be granted an Oleh’s visa. Oleh, for my colleagues not dealing with Israeli law (plural: olim) means a Jew immigrating into Israel. The Oleh Visa is granted by mere expression of the interest to “relocate” to Israel as a qualifying Jew (albeit born outside Israel after 1950).

A person shall not be registered as a Jew by ethnic affiliation or religion and will be denied Oleh Visa, despite being a Jew as defend, inter alia because of political status / activity (i.e. is engaged in an activity directed against the Jewish people or which is likely to endanger public health or the security of the state of Israel) or secondly, where a notification (issued under the Law of Return 5710-1950 as amended by Law of Return Read more

FTB Issues Letters to Over 1 Million California Tax Payers Seeking Tax Returns

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More than one million people who did not file a 2012 state income tax return are receiving letters seeking those returns or to verify that they do not have a tax filing requirement, according to the Franchise Tax Board (FTB).

Since the 1950s, FTB has contacted people who have California income, but did not file a tax return. Last year, FTB collected more than $727 million through these efforts.

Each year FTB receives more than 400 million income records from third parties such as banks, employers, state departments, the IRS, and other sources. FTB matches these income records against its records of tax returns filed. While this program mainly identifies wage earners and self-employed individuals who have not filed, it also detects Read more

Basis and Depreciation: A Review for Tax Professionals Part II

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Once you have determined the type of property/asset you are dealing with you must determine use. There are four use classifications of property:

1. Personal-use property (not the same as personal type) is owned for personal use and enjoyment or living purposes. Items such as a primary residence, vehicle, clothing, household goods, recreational items, pets, etc, all are considered personal use property.

2. Investment-use property is property owned with a primary objective of increasing in value even though some current income may be generated. This classification includes things like land, collectibles like art or coins, capital stocks, bonds, and buildings not used in active rental. Read more

United States Corporations With Foreign Shareholders? Form 5472 – Part II


Part I of the topic exploring Form 5472, was posted last week and covered the situation when Form 5472 must be filed by a US corporation that is at least 25% owned by a foreign shareholder. Today’s post covers the other type of case requiring the filing of this form – when a foreign corporation that is engaged in a US trade or business (USTB) has a “reportable transaction” with either a US or a foreign related party.

Generally, the purpose of the form is to disclose the nature and amount of foreign and domestic transactions that occur with related-parties, since these types of transactions can give rise to abuse (for example, in transfer-pricing or in attempts to siphon off taxable earnings and profits in disguised non-taxable forms). Read more

IRS Released “Get Transcript” Application for Real Time Downloading of Information on Your Tax Account

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My friend Bill Nemeth from Georgia informed me this morning of the IRS’ new application roll out that allows any individual taxpayer to view, print or download their own transcripts on-line in Real-Time using a computer or Smartphone. You simply go to and enter GET TRANSCRIPT in the site search bar, or go here!

This is a giant leap forward for those of us working with the IRS. Once in their system a user creates a user profile by identifying himself (SSN and DOB) and answering a number of security questions (standard public database questions like what what year did you purchase your home, how much did you pay for your home, etc). Read more

Basis And Depreciation: A Review For Tax Professionals – Part I

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Depreciation is one of the standards of tax preparation that every tax professional must have a firm grip on to do right by their client. In order to understand depreciation you must first understand basis. Over the next several posts in this series we will review basis and depreciation, discuss the relationships of them to each other, and review old, new and expiring depreciation provisions.

Basis is generally defined as the taxpayer’s investment in the asset and depreciation is defined as the allocation of an asset’s cost over a period of time that is in line with the useful life of the asset. This allows the recovery of normal wear and tear on an asset throughout it’s useful life. Read more

Foreign Corporate Acquisitive Reorganizations

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As a general proposition, when a United States person makes a transfer of property to a foreign corporation to which Sections 354, 356, and 361 of the Internal Revenue Code, hereinafter the Code, would be applicable the transferee foreign corporation is not considered a corporation for statutory purposes. (1) It is this general rule that provides domestic corporations’ nonrecognition treatment by virtue of Section 354, 356, and 361 of the Code and requires a foreign corporation to recognize gain when it would otherwise be accorded a tax-free reorganization.

Reorganizations are only those transactions constructed in Section 368 of the Code. (2) It is Read more