How Tax Works

In Episode 31 of How Tax Works, Matt Foreman revisits the passive activity loss limitation rules that he discussed in Episode 13—but from the view of real estate investors. The episode focuses on the additional rules for rental real estate, as well as practical tips to survive an audit. Listen to Episode 13 - At Risk Limitations under IRC 465 here: https://frblaw.com/podcast/passive-activity-losse...

In episode 30 of How Tax Works, Matt Foreman continues his discussion of important and relevant tax cases, discussing gambling losses, whether something is a gift, whether an asset is inventory or a capital asset, and closing with a discussion of Broadway producer George M. Cohan’s contribution to tax law. How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq....

In episode 29 of How Tax Works, Matt Foreman discusses important and relevant tax cases, noting that there might be a patriotic duty to pay your taxes due, the power of substance versus form arguments, and how hedges are taxed. How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq., LL.M., delves into the intricacies of taxation, breaking down complex concepts...

In Episode 28 of How Tax Works, Matt Foreman discusses Family Offices, focusing on purpose, structure, and why they’re the perfect solution for booking a family vacation to Monaco. How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq., LL.M., delves into the intricacies of taxation, breaking down complex concepts for a clearer understanding of how tax laws im...

In episode 27 of How Tax Works, Matt Foreman discusses what to do when you’ve made a S election and might have some remorse, need to restructure, or need to sell part of the business. How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq., LL.M., delves into the intricacies of taxation, breaking down complex concepts for a clearer understanding of how tax laws...

In episode 26 of How Tax Works, Matt Foreman discusses how to ensure mergers and acquisitions are tax-free, why it’s not always best to squeeze into tax-free status, general requirements, and common issues. How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq., LL.M., delves into the intricacies of taxation, breaking down complex concepts for a clearer unders...

In Episode 25 of How Tax Works, Matt Foreman discusses the tax implications of dividing partnerships, redeeming partners, and dealing with partnership debt.  How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq., LL.M., delves into the intricacies of taxation, breaking down complex concepts for a clearer understanding of how tax laws impact your financial dec...

In Episode 24 of How Tax Works, Matt Foreman discusses how to divide two businesses into separate entities, focusing on the legal requirements and best practices. How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq., LL.M., delves into the intricacies of taxation, breaking down complex concepts for a clearer understanding of how tax laws impact your financia...

In Episode 23 of How Tax Works, Matt Foreman discusses the five W’s of F Reorgs: Who needs one, What they do (and don’t do), When they’re necessary, Where the foot faults lie, and Why you need to be careful when undertaking one. How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq., LL.M., delves into the intricacies of taxation, breaking down complex concept...

In Episode 22 of How Tax Works, Matt Foreman discusses Golden Parachutes under section 280G, which may sound like a fun thing to have, but they likely result in the highest effective income tax rates. How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq., LL.M., delves into the intricacies of taxation, breaking down complex concepts for a clearer understandin...

In Episode 21 of How Tax Works, Matt Foreman discusses why foreign persons almost certainly shouldn’t own LLCs, a surprisingly common issue. How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq., LL.M., delves into the intricacies of taxation, breaking down complex concepts for a clearer understanding of how tax laws impact your financial decisions. Follow us...

In Episode 20 of How Tax Works, Matt Foreman discusses the pros and cons of buying a professional sports team from a tax perspective. Listen for a discussion of depreciation, amortization, and business expenses galore. How Tax Works, hosted by Falcon Rappaport & Berkman LLP Partner Matthew E. Foreman, Esq., LL.M., delves into the intricacies of taxation, breaking down complex concepts for a cl...

In Episode 19 of How Tax Works, Matt Foreman concludes his discussion of Qualified Small Business Stock (QSBS), which is section 1202 of the Internal Revenue Code.  He discusses possible ways to increase the QSBS exclusion, including gifting, various trusts, and so-called stacking transactions, with a warning about the anticipatory assignment of income doctrine, finishing up with the ability to ro...

In Episode 18 of How Tax Works, Matt Foreman continues his discussion of Qualified Small Business Stock (QSBS), section 1202 of the Internal Revenue Code. In this episode, he discusses the original issuance requirement, issues with redemptions, gifts, partnership distributions, short positions, the Qualified Small Business requirement, the active business requirement, possible meanings of “substan...

In Episode 17 of How Tax Works, Matt Foreman talks about Qualified Small Business Stock (QSBS), which is section 1202 of the Internal Revenue Code.  In this episode, he discusses how (and whether) income is excluded, the holding requirement, basis rules and the per-issuer requirement, and certain transactions that allow for continued deferral of tax.  Please also see Matt Foreman’s upcoming webina...

In episode 16 of How Tax Works, Matt Foreman talks about how to lower your taxes and why your accountant probably shouldn’t let you deduct your Bugatti, as well as answering a question from Ken Falcon, Managing Partner at Falcon Rappaport & Berkman LLP regarding whether property acquired via adverse possession is taxable.  This episode is for anyone who has asked or has been asked a quick tax...

In episode 15 of How Tax Works, Matt Foreman discusses tax issues with divorce, from transfer between spouses, to splitting up businesses and the need for detailed documents to avoid problems.  This episode is for anyone who knows anyone who has ever gotten divorced, which should be everyone in the known world at this point. Please also see Matt Foreman’s upcoming webinars! Details below: Deductin...

In episode 14 of How Tax Works, Matt Foreman discusses another signature change from the Tax Reform Act of 1986, section 465, which often prevents deductions from activities where the owner does not have capital subject to a risk of loss.  This episode is for anyone who is using leverage or investing in a business that will produce initial losses without requiring an initial capital contribution....

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...