| Going into Business |
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| The costs of getting a business started are capital expenses. If the costs qualify as business start-up costs, organizational costs for a corporation, or organizational costs for partnership, they can be amortized and recovered over a period of 60 months or more.More... |
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| Sales Tax |
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| Most states impose some sort of tax on the sale of tangible personal property within the state, and the sales tax can make up a large part of a state's revenue. States vary as to whether it is the seller, the buyer, or a combination of the two that is liable for the privilege of selling goods at retail within the state, but most states impose the obligation to collect the tax from the buyer onto the seller.More... |
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| Abusive Tax Schemes Involving Indian Tribal Governments |
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| Federally recognized tribes are sovereign legal entities, similar to state governments, with all the rights and attributes of a sovereign entity such as a state. They have a constitutionally guaranteed status as sovereign entities. An Indian tribe, as an income producing entity, is not subject to income taxation. However, income earned, if not otherwise exempt from income taxation, must included in the gross income of the Indian tribal member when distributed or constructively received by the tribal member.More... |
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| Partnership Anti-abuse Provisions |
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| The Internal Revenue Service has the authority to disregard the partnership form of an entity if the operations of the business are found to be inconsistent with the intent of the partnership tax statutes and the partnership form is being used for tax-avoidance purposes. According to Treasury Regulations, the intent of the partnership laws is to allow taxpayers to conduct a joint business activity through a flexible economic arrangement without incurring an entity-level tax. More... |
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| Property Exempt from State and Local Taxation |
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| When a state or local governing body decides to impose a tax, all property coming within the scope and purpose of the statute is subject to taxation unless the legislature has created an express exemption for reasons of public policy. The fact that the owner of certain property is exempt from taxation under the Internal Revenue Code does not determine whether or not that property is exempt from state or local taxation. It is the legislating state or local government, not the Internal Revenue Service, that is the final word on whether certain property is exempt from its taxing authority.More... |
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