Financial Resources & News
Debt-financed distributions for pass-throughs: how they work and when they make sense
When a pass-through business takes out a loan at the entity level and immediately distributes the borrowed funds to its owners, this is considered a debt-financed distribution. This maneuver provides owners with immediate liquidity without triggering a current tax bill, as long as they have sufficient tax basis to cover the distribution.
Incentive units: how partnership-style equity can reward talent without a surprise tax bill
Non-public pass-through companies can’t flash the same liquid stock options that publicly traded C-corporations deploy, but a profits interest solves the problem by letting newcomers participate only in growth that occurs after the grant date – with no immediate tax bill for either party. Learn more in our article.
Personal Guarantees: Costly Risk or Tax Leverage?
Banks want an extra layer of security for business loans, and a personal guarantee delivers it – but for partnership owners, there’s a hidden tax advantage most overlook. This synthetic capital injection can turn a necessary business risk into meaningful tax leverage, provided you understand the mechanics and monitor the potential pitfalls.
Attribution rules explained: how constructive ownership can affect your tax strategy
You may think you don’t own a particular business interest, but the IRS might disagree. Under constructive ownership rules, the tax code can attribute ownership to you based on family relationships or entity structures. Understanding these rules before they impact your tax strategy is essential for business owners with family ties, trusts, or complex ownership structures.
A tax-focused walk-through of the One Big Beautiful Bill Act
The One Big Beautiful Bill Act overhauls the tax code, locking in many 2017 cuts and unveiling new relief for workers, families, and businesses. Read our article for an overview of new rules created by the Act, in addition to extensions or enhancements of existing provisions.
Proposed changes to cost accounting standards: easing the compliance load for federal contractors
Contractors dealing with government work may soon face less compliance hassle as the Cost Accounting Standards Board proposes aligning CAS 404 and CAS 411 with Generally Accepted Accounting Principles (GAAP). By potentially lowering administrative burdens and harmonizing commercial and federal accounting, these changes promise streamlined operations while still protecting government interests. Explore what these proposed revisions could mean for your business and how to prepare effectively for the transition.
What is a cash balance retirement plan?
Curious about cash balance retirement plans? These plans can offer much higher contribution limits and potential tax advantages, but they also come with more complexity and commitment. Read on to see if this strategy might align with your goals – or if it’s something to skip altogether.
IRS maintains steady interest rates for Q3 2025
The IRS has announced that interest rates will remain steady for Q3 2025, impacting both individuals and corporations with overpayments or underpayments. With rates holding at 7% for individuals and varying rates for corporations, taxpayers can strategically plan their financial moves.
What to do if you receive a notice from the IRS
Did you receive a letter from the IRS? Learn what steps you should take and mistakes to avoid in responding to a notice.