Tax Corner

Classifying Service Providers as Employees or Independent Contractors

Question: One of my employees is leaving the company but will continue to render services for our business. Is there a problem if I treat the worker as an independent contractor?

Tax Strategies with Incentives Stock Option Plans

Tax Corner, Bruce E. Bell, Insights

Question: I hold incentive stock options which I received from my employer. Since the stock is trading above the option exercise price, should I exercise the options and acquire shares of employer stock or do a cashless exercise?

Avoiding the Tax Trap in Transferring Installment Sale Obligations

Tax Corner, Bruce E. Bell, Insights

Question: I just sold stock in my corporation to a third party and received a cash payment upfront with the balance of the sale proceeds to be paid to me in the future. Since I do not need the additional funds, can I make a gift to my children of the right to the future payments?

Obstacles in Establishing Non-Qualified Deferred Compensation Plans

Insights, Bruce E. Bell, Tax Corner

Question: I want to create a deferred compensation plan for certain highly paid employees of my company to provide additional benefits for them, separate and apart from the company profit sharing and 401(k) plan. Can you advise what obstacles I must be concerned with?

Avoiding Taxable Gain on Mortgage Foreclosure

Insights, Bruce E. Bell, Tax Corner

Question: My daughter is well behind on her home mortgage payments and her house will likely be lost by foreclosure or otherwise. Will she have to pay tax on the unpaid mortgage balance?

Establishing Disability Insurance Program for Employees

Insights, Bruce E. Bell, Tax Corner

Question: I own and operate a small business and am trying to determine how best to establish an insured disability insurance program for the company employees. If an employee becomes disabled and receives benefits from the insurance company, will the employee be taxed on the benefits received?

Post-Mortem IRA Withdrawal Strategies

Insights, Bruce E. Bell, Tax Corner

Question: I am the beneficiary of my uncle’s IRA who died at age 65. What is the best way for me to withdraw money from the account?

Tax Savings on Business Contract Sales

Insights, Bruce E. Bell, Tax Corner

Question: My wife and I hold contracts to provide property management services to real estate owners. Are we entitled to capital gain treatment if we sell these contracts or do we need to form a limited liability company to do so?