How Tax Works

In episode 13 of How Tax Works, Matt Foreman discusses one of the signature changes from the Tax Reform Act of 1986, section 469, which often prevents passive losses from being used to offset income in from other activities.  This episode is for anyone who is considering energy tax credits, buying real estate, or any other area of investment that will generate losses or tax benefits without necess...

In this episode of How Tax Works, host Matt Foreman continues his discussion of self-employment taxes, the ongoing tax saga of a hedge fund’s partners trying to convince the IRS that they are “limited partners, as such”, and the somewhat-related Net Investment Income Tax.  This episode is for anyone who is starting, operating, structuring, or wondering about how income tax structuring interplays w...

In this episode of How Tax Works, host Matt Foreman discusses self-employment taxes, the ongoing tax saga of a hedge fund’s partners trying to convince the IRS that they are “limited partners, as such”, and the somewhat-related Net Investment Income Tax.  This episode is for anyone who is starting, operating, structuring, or wondering about how income tax structuring interplays with other kinds of...

In this episode of How Tax Works, host Matt Foreman discusses the tax consequences of going from a disregarded entity to a partnership (Rev. Rul. 99-5) and from a partnership to a disregarded entity (Rev. Rul. 99-6).  From explaining when there is taxable income (and how to structure to avoid it), as well as capital accounts, inside basis, and outside basis, this episode is for anyone who is start...

In this episode of How Tax Works, host Matt Foreman discusses a variety of state and local income tax issues that commonly come up during sales/purchases, raising capital, and the general operation of a business that crosses state lines, such as sourcing, PTETs, and the quirks of local income taxes. Please also see Matt Foreman’s upcoming webinars! Links are below: Positives and Negatives of S Cor...

In this episode of How Tax Works, host Matt Foreman discusses the tax consequences of Convertible Debt and Simple Agreements for Future Equity (SAFE).  From explaining what it means to use Convertible Debt and SAFEs, to the tax consequences of each, this episode is for anyone who is investing in a business in anything that is not strictly equity or debt. Please also see Matt Foreman's upcomin...

In a quasi-continuation of episode 6 of How Tax Works, host Matt Foreman discusses the most misunderstood and misapplied form of equity grants: Profits Interests.  This episode is for anyone who wants to better understand promotes and springing interests, as well as anyone who wants to grant or receive equity in a way that does not require the immediate payment of taxes.  How Tax Works, hosted by...

In this episode of How Tax Works, host Matt Foreman discusses the tax consequences of equity compensation, including stock options (ISOs and NSOs), Stock Appreciation Rights and Phantom Stock, Restricted Stock Units, and Restricted Stock Awards, as well as when (and how!) you can and cannot make 83(b) elections.  This episode is for anyone who wants to know what happens when their boss asks them i...

In a continuation of episode 4, in this episode of How Tax Works, host Matt Foreman gives examples of what you can deduct as a business expense, including home office deduction, family trips to the Pumpkin Patch, hiring your children, and the so-called Augusta Rule.  This episode is for business owners, attorneys, accountants, and their advisors, as well as anyone who has ever wondered “can I dedu...

In this episode of How Tax Works, host Matt Foreman discusses what you can deduct as business expenses, giving an overview of the law, regulations, and case law, as well as practical commentary based on his experience.  This episode is for business owners, attorneys, accountants, and their advisors, as well as anyone who has ever wondered either “can I deduct this?” or “should I deduct this?” How...

In this episode of How Tax Works, host Matt Foreman discusses state residency rules to determine where an individual is a resident for income tax purposes.  Focusing on New York’s rules, Matt will discuss rules for residency, domicile, and how to change both.  This episode is for business owners, attorneys, accountants, and their advisors, as well as the Franchise Tax Board of California, which li...

In this episode of How Tax Works, host Matt Foreman discusses Sales and Use Taxes.  Matt will define sales taxes and use taxes; describe the common and disparate features between states; what to do if you need to collect; and how to determine if what you sell is subject to sales tax.  This episode is for business owners, attorneys, accountants, and their advisors, as well as Wayfair, Overstock, an...

Welcome to the first episode of How Tax Works. Host Matt Foreman discusses what is likely the most important decision that a business owner can make: Entity Selection.  Matt will discuss many of the tax and non-tax factors, ways to weight those factors, and the tax effects of each type of entity.  This episode is for business owners, attorneys, accountants, and their advisors, as well as anyone wh...