Everything About Book To Tax: Detailed & Informative Book to tax reconciliation is the process of analyzing and detailing the differences between a company’s financial income (as reported on its books) and the taxable income reported to the IRS. These differences arise because financial reporting (under U.S. GAAP or IFRS) and tax reporting (under the…
A Complete Article On Passive Foreign Investment Company (PFIC) A Passive Foreign Investment Company (PFIC) is essentially a foreign corporation whose income or assets are predominantly passive. Under IRS rules, a foreign fund or corporation is a PFIC if either 75% or more of its gross income for the year is passive (e.g. dividends, interest,…
What Is Waterfall Allocations?- A Must Read Guide Waterfall allocations is a structured method for distributing profits among participants in an investment partnership, such as private equity, real estate syndications, and venture capital funds. The distribution occurs in tiers or “levels,” and each level must be fully satisfied before profits move to the next level—much…
What is UBTI (Unrelated Business Taxable Income)? Things You Should Know Unrelated Business Taxable Income (UBTI) refers to income earned by a tax-exempt organization from a regularly carried-on trade or business that is not substantially related to its exempt purpose or function, aside from the need for funding. While organizations like charities, pension funds, or…
Wondering Where Is My New Jersey State Income Tax Refund? Here’s How to Track It! Are you wondering about “Where Is My New Jersey Tax Refund?” then this comprehensive guide is only for you. New Jersey state tax refund is the amount of money the state returns to a taxpayer when the total tax payments…
A Complete Guide to New York Pass-Through Entity Tax for Business Owners The New York Pass-Through Entity Tax (PTET) is an optional tax system created as part of the state’s strategy to address the federal cap on state and local tax (SALT) deductions. Enacted in 2021 under Article 24-A of the New York Tax Law,…
The Pass Through Entity Elective Tax (PTET) is a state-level tax mechanism that allows certain businesses classified as pass-through entities—such as partnerships, S corporations, and limited liability companies (LLCs) treated as such—to elect to pay state income tax at the entity level rather than at the individual owner level. This tax structure is designed in…
The California Pass Through Entity Tax is a state-level elective tax designed to help owners of pass-through entities, such as partnerships, S corporations, and LLCs treated as partnerships. In order to lessen the impact of the federal $10,000 cap on state and local tax (SALT) deductions, owners of pass-through companies, such as partnerships, S corporations,…