Tax Corner

Deducting interest on LLC debt refinancing

Question:        I received a distribution from a limited liability company in which I am an owner representing proceeds from the refinancing of a commercial loan on company property. Can I deduct my share of the interest on this debt?

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Overcoming Nondeductibility of Entertainment Expenses

Question: Is there any way to deduct business entertainment expenses after the most recent tax legislation?

Answer: The Tax Cuts and Jobs Act of 2017 fully eliminated deductions for entertainment expenses incurred by taxpayers, effective for tax years beginning after December 31, 2017. 

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Avoiding S Corporation Passive Income Tax

Question: My S corporation, previously a C corporation, has historically received rental income from a real estate property.  Now that the company’s operating business has been sold, can the S corporation passive income tax on rental income be avoided?

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Maximizing Benefits with Stock Options

Question:   I was granted incentive stock options and non-qualified stock options from my company prior to the time the company went public. Can you explain the tax consequences and whether I am better off buying and holding the stock or doing cashless exercises?

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Distributing Bypass Trust Assets for Income Tax Savings

Question: As a surviving spouse, most of my assets are held in my deceased husband’s bypass trust to which I am entitled to distributions of income and principal.  Since I will no longer be subject to estate taxes, is there an advantage to my withdrawing as much money as possible from this trust?

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