The Trader vs. Investor Hurdle Just Gets Higher A few months back I wrote about the Nelson case, a Tax Court case dealing with a U.S. individual who claimed she was a “trader” for federal income tax purposes. In that piece I suggested that the trader / investor analysis being utilized by the modern-day Tax…
What is an Entrepreneur? “An entrepreneur knows the difference between an idea and an opportunity” – the late Jeffry A. Timmons – Professor of Entrepreneurship – Babson College As the phrase goes, truer words have never been spoken and after another weekend of looking at “pitch decks” I wish every entrepreneur (or would-be entrepreneur) would…
Net Capital Traps for Brokers or Dealers Every broker or dealer (“BD”) is required to maintain a specified level of net working capital, as defined in Securities Exchange Act Rule 15c3-1. The dollar threshold is the greater of the regulatory minimum, which ranges from $5,000 to $1.5 million, or a specified percentage (generally 6-2/3) of…
The Journal Spring 2014 GETTING MORE OUT OF YOUR COMMERCIAL LEASING SOFTWARE [author-style]By Anupam Goradia, CPA, CISA, CITP[/author-style] Modern commercial real estate lease accounting software provides ample features to make day-to-day management of leasing businesses less complicated. Software enables “management by exception,” whereby management can focus on issues that require attention and follow-up. While the…
There is one common requirement faced by every type of broker-dealer (“BD”), the concept of Regulatory Net Capital; however, depending upon the type of business the BD engages in, the thresholds could vary significantly. This article will provide an overview of some of the common types of BD and the minimum net capital requirements established…
Can You Be an Entrepreneur? D.A. Jim Trotter: In what way are you qualified? Mona Lisa Vito: Well, my father was a mechanic, his father was a mechanic, my mother’s father was a mechanic, my three brothers are mechanics, four uncles on my father’s side are mechanics… D.A. Jim Trotter: Your family is obviously qualified,…
WithumSmith+Brown Celebrates 40 Years of Success The professionals at WithumSmith+Brown, PC (WS+B), Certified Public Accountants and Consultants, are knee-deep in 1120s and 1040s right now, but will carve out a little time this busy tax season to help celebrate the firm’s 40thanniversary on March 21. Incorporated in 1974, WS+B originally started with six employees in…
I Am In This Business, But I Have To Get Out Partial quote from Young Frankenstein by Mel Brooks Dr. Frederick Frankenstein: . . . No matter what you hear in there. No matter how cruelly I beg you… Do not open this door or you will undo everything I have worked for. Inga: Yes,…
Navigating the Schedule K-1 March 19, 2014 1 CPE Credit Many physicians are partners, LLC members or S-Corp shareholders in their physician practices and receive a K-1 from the entity. K-1 reports the allocable share of the income, losses, dividend receipts, and capital gains but can be quite complex when recorded on the federal return….
International Tax Loopholes – The Playing Field Is Not Level A recent Bloomberg article reported that the offshore cash hoard of U.S. multinational companies had risen by $206 billion last year as the companies continued to avoid U.S. taxation (see article here https://www.bloomberg.com/news/2014-03-12/cash-abroad-rises-206-billion-as-apple-to-ibm-avoid-tax.html). Personally, I find it amazing that the popular press and its American…