Debt Basis in Partnerships and S-Corporations

As a store owner, you are well aware that the decision of which legal structure to hold your business in can have far-reaching consequences.  From a tax perspective, the consequences may include your ability to deduct tax losses from the business on your personal tax return.  This article compares the manner of computing the tax basis of interests in partnerships versus S corporations.  These two entity types are very similar yet in certain key ways very different when it comes to taxes.

Uniform Capitalization Rules for Grocers

The Uniform Capitalization (UNICAP) rules were enacted by Congress in an attempt to bring some consistency and clarity to the question of what should be capitalized versus expensed.  For small grocers, these tax provisions are usually out of sight, out of mind due to various exemptions.  But when that small grocer starts to grow and expand, the exemptions may become inapplicable throwing the grocer into UNICAP’s complex maze of detailed rules and regulations. But how does a small reseller know when it has exceeded the threshold and must conform to the UNICAP rules?

More on the Charitable Food Inventory Deduction

As we noted in the last segment of our Tax Updates, one of the items included in the recently enacted  “Protecting Americans from Tax Hikes Act of 2015” (“Path Act”), was a change to the Charitable Food Inventory Deduction.  Since this deduction has been permanently extended, and due to the importance to the grocer industry, we felt that it would be beneficial to discuss a few of the basic requirements for taking this deduction.

More on the Charitable Food Inventory Deduction

2015 Tax Extenders Legislation (Part II)

This is our second of two installments on the recently passed Protecting Americans from Tax Hikes Act of 2015 (PATH Act), more informally known as the 2015 Tax Extenders Legislation.  In Part I, we gave a general overview of those provisions which are of particular interest to the grocer industry.  In this segment, we will delve a little deeper into two of the provisions: the charitable deduction for donation of food inventory and bonus depreciation.
Charitable Deduction of Food Inventory


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