Category Archives: Classification

Avoid Mixing up a W-2 Employee and 1099 Contract Worker

By Frank L. Brunetti on April 20th, 2012 Posted in Audits, Business Entities, Classification, Federal Income Tax, Independent Contractor, IRS, Tax Return, Taxes, Telecommuting

Federal tax law draws defining lines between employees and independent contractors, but these boundaries can blur at times, and misinterpreting them can have negative implications for employers. Three tests are typically used to define a worker’s status for tax purposes: Behavior, financial and relationship tests. In terms of behavior, independent contractors typically make their own… Continue Reading

Onward! To Alaska! Strategies for Selling Assets (Part 1 of 2)

By James F. McDonough, Jr. on January 16th, 2012 Posted in Classification, Estate Tax, Fair Market Value, Gain Recognition, Property Tax, Taxes

Despite your thoughts about Sarah Palin, Alaska has a great reputation when trying to recognize gain by selling assets. The Background It is not uncommon for clients to have valuable assets that, if sold, would cause a great deal of gain. The client’s dilemma is whether to hold the asset until death, thereby obtaining step-up… Continue Reading