Tag: C Corporation Tax

Business Owner Liable for Tax Incurred by a Buyer After the Sale of the Business?

If you own a business and you sell it to a third party, should you be liable to the IRS for taxes triggered by the buyer after the business you sold? What if the tax was triggered by the buyer’s wrongdoing? What if there was no evidence that you even knew that the buyer would… Continue reading Business Owner Liable for Tax Incurred by a Buyer After the Sale of the Business?

The post Business Owner Liable for Tax Incurred by a Buyer After the Sale of the Business? appeared first on Houston Tax Attorneys | Mitchell Tax Law.

September 19, 2025
Income Shifting to Reduce Tax for Real Estate Sale

Income shifting is a fundamental income tax planning concept. It involves strategically allocating income among related taxpayers to minimize the overall tax liability. This may be intended to use up tax attributes of one taxpayer (such as deductions or tax credits), take advantage of tax deferral options to delay paying taxes, or take advantage of… Continue reading Income Shifting to Reduce Tax for Real Estate Sale

The post Income Shifting to Reduce Tax for Real Estate Sale appeared first on Houston Tax Attorneys | Mitchell Tax Law.

May 25, 2024
The Disguised Dividend for Owner-Employees

The corporation can be viewed from a number of different perspectives. One way is to view it as a group of people coming together to perform some business activity, with each having different relationships and risks in the arrangement. The role any one individual plays in the corporation may not be clearly defined. The owner-employee… Continue reading The Disguised Dividend for Owner-Employees

The post The Disguised Dividend for Owner-Employees appeared first on Houston Tax Attorneys | Mitchell Tax Law.

June 4, 2023
Tax Implications of Debt vs. Equity in Related Entities

Investors who engage in successful ventures often also invest in less successful ones. In some cases, one venture ends up funding another. When a taxpayer operates through multiple legal entities, this can lead to numerous complexities. For example, “due to” and “due from” intercompany transactions raise questions, even if they do not involve international transfers.… Continue reading Tax Implications of Debt vs. Equity in Related Entities

The post Tax Implications of Debt vs. Equity in Related Entities appeared first on Houston Tax Attorneys | Mitchell Tax Law.

March 19, 2023
Overcoming the IRS’s Constructive Dividends Argument

Those who own C corporations have to be careful about what amounts are paid out to or benefit the corporate shareholders. This is particularly true for closely held and family corporations. On audit, the IRS will often assert that these distributions are constructive dividends. This is usually a bad answer for taxpayers as it increases… Continue reading Overcoming the IRS’s Constructive Dividends Argument

The post Overcoming the IRS’s Constructive Dividends Argument appeared first on Mitchell Tax Law.

September 18, 2022
Choice of Entity: Tax Plans for Pharmacies

Our laws have long said that taxpayers are free to structure their legal affairs to minimize their taxes. Congress has even provided very specific provisions to accomplish this. Section 1202 stock is an example. This provision is intended to encourage start-ups to take business risks by rewarding those who are successful by allowing them to… Continue reading Choice of Entity: Tax Plans for Pharmacies

The post Choice of Entity: Tax Plans for Pharmacies appeared first on Mitchell Tax Law.

May 30, 2022
Contribution to Corporation, then Sale of the Corporation

Most income tax planning involves questions about income, deductions or credits, character, or timing, or some combination of these questions. When viewed from these categories, even simple transactions can present tax planning opportunities. The contribution of property to a corporation by its shareholder is an example. A contribution triggers taxable income to the shareholder. Our… Continue reading Contribution to Corporation, then Sale of the Corporation

The post Contribution to Corporation, then Sale of the Corporation appeared first on Mitchell Tax Law.

October 8, 2021