The latest stimulus bill gives businesses the ability to deduct expenses paid with forgiven PPP proceeds. This is good news, but is not what this post is about. The stimulus bill says deductions are allowed and “no basis increase shall be denied.” It’s the “basis” piece I want to address here. This seems like an […]
In tax terminology, the term “draw” refers to money taken out of a sole proprietorship by the proprietor, or out of a partnership by a partner.
What is basis? Basis in a business can be thought of as a person’s stake in that business.
Glossary of tax terms: capital gain/capital loss
(UPDATE 9/13/11: Form 8939 still has not been released, but the IRS has pushed back the filing deadline to January 17, 2012. Click here for more info.) The IRS still hasn’t released the new Form 8939 for estates created in 2010. The form will be used to elect out of the estate tax for 2010 and to […]