Incorporation Question Under New Tax Law

The new tax law impacted business taxation. This guide looks at the implications of the new tax law and whether you should incorporate your business or not.

When can I record a capital loss?


I trade Forex, i deposited ruffly about 4k to the account and i never withdrew my profits and now i "blew my account" I lost all my money , can i claim that loss since i never withdrew money? i heard that the most that i can claim is 3k? is this true? Thank you


IRS Offers "Sharing Economy Tax Center"

With the advent of Airbnb, Uber, Lyft and other aspects of the "sharing economy", the IRS has started a "tax center" with information on how to properly file profits and losses associated with these activities.

Among the following tax issues that may apply to those participating in the sharing economy:

You Must Waive NOL Carrybacks Before Carrying Losses Forward

Generally, if you have a business loss, such losses are first carried back to reduce previous taxes paid. However, if you waive the carry back, you can carry the loses forward.

However, according to a recent case, (Jasperson, 11th Cir.), the judgement stated that since the NOL (net operating loss) carry-back was not explicitly waived, the NOL could not be carried forward.

Filing Form 941 for Children in Your Sole Proprietorship

Employing your minor children in your sole proprietorship can make a lot of sense. It gives them experience, a bit of money, and can lower the average tax rate for your family.

You'll need to have them do "real" work, pay them a reasonable wage, and keep proper records and filings.

One filing you'll need to make is Form 941, "Employer's Quarterly Tax Return". If you ONLY employ your minor children in your sole proprietorship, they won't be subject to Social Security or Medicare taxes.

Use a Certified Payroll Processor to Avoid IRS Fines

If you outsource your payroll function, you should consider using a "certified" payroll processor.

If you do not use a "certified" payroll processor, you will be liable for unpaid taxes if the processor doesn't send your taxes withheld to the IRS.

Offshore Poker Accounts Not Subject to FBAR Reporting

The US Court of Appeals for the Ninth Circuit recently overturned a lower court ruling regarding FBAR (Foreign Bank and Financial Accounts Report -- Treasury Form TD F 90-22.1).

Essentially, "pure offshore poker accounts" are not reportable under FBAR, but offshore "money transmission" accounts are reportable.

From the judgement :

Qualifying for Foreign Earned Income Exclusion

In a recent US Tax Court case (Hirsch, TC Summ. Op. 2016-37), a US citizen who lived in Israel "for convenience" was not allowed to exclude his income which he "earned" in Israel.

From the judgment :


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