U.S. tax articles
Clear explanations of the concepts tax professionals use every day, from the basics to more complex topics.
50 articles
Basics · Individual Income Tax and Form 1040
What Is Form 1040? A Beginner's Guide
Form 1040 is the main U.S. individual income tax return. Learn what it reports, how it flows, and which schedules support it.
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Basics · Individual Income Tax and Form 1040
Filing Status Explained: The Five Options
Single, married filing jointly, married filing separately, head of household, or qualifying surviving spouse: how each filing status works.
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Basics · Individual Income Tax and Form 1040
Gross Income, AGI, and Taxable Income: What's the Difference?
Three income figures drive every Form 1040. Learn how gross income, adjusted gross income, and taxable income relate.
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Basics · Individual Income Tax and Form 1040
Standard Deduction vs. Itemized Deductions
How to decide between the standard deduction and itemizing on Schedule A, with the common deductions explained.
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Basics · Individual Income Tax and Form 1040
Tax Credits vs. Tax Deductions
Deductions reduce taxable income while credits reduce tax itself. Learn the difference, with refundable and nonrefundable credits explained.
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Basics · Individual Income Tax and Form 1040
W-2 vs. 1099: Employee or Independent Contractor?
The difference between W-2 employees and 1099 contractors, how each is taxed, and how worker classification is decided.
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Basics · Individual Income Tax and Form 1040
Self-Employment Tax Explained
What self-employment tax is, how it is calculated on Schedule SE, and how it interacts with the income tax.
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Basics · Individual Income Tax and Form 1040
Schedule C Basics for Sole Proprietors
A plain guide to Schedule C: who files it, what income and expenses it reports, and common mistakes to avoid.
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Basics · Capital Gains and Property Transactions
Capital Gains: Short-Term vs. Long-Term
How capital gains are taxed, what the one-year holding period means, and how capital losses work.
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Basics · Individual Income Tax and Form 1040
Schedule E: Reporting Rental Income
How landlords report rent and expenses on Schedule E, including depreciation and the passive loss rules.
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Basics · Individual Income Tax and Form 1040
Estimated Tax Payments: Who Pays and When
Who needs to make quarterly estimated tax payments, when they are due, and how the safe harbor rules avoid penalties.
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Basics · Individual Income Tax and Form 1040
Section 121: Excluding Gain on the Sale of Your Home
How the home sale exclusion works, including the ownership and use tests and when part of the gain stays taxable.
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Basics · Individual Income Tax and Form 1040
Traditional IRA vs. Roth IRA
Compare traditional and Roth IRAs: tax treatment, withdrawal rules, and how to think about the choice.
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Basics · Capital Gains and Property Transactions
The Wash Sale Rule Explained
How Section 1091 disallows losses when you rebuy the same security within 30 days, and what happens to the disallowed loss.
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Basics · Individual Income Tax and Form 1040
Passive Activity Loss Rules in Plain English
How Section 469 limits passive losses, what material participation means, and the rental real estate exceptions.
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Basics · Business Deductions and Depreciation
Sole Proprietorship, LLC, S Corp, or C Corp?
How the main U.S. business structures are taxed, and what to consider when choosing one.
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Basics · Corporate Tax and Form 1120
Form 1120 Basics: How C Corporations Are Taxed
An introduction to Form 1120: what C corporations report, the 21% rate, key schedules, and due dates.
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Basics · S Corporations and Form 1120-S
S Corporation Basics: Rules and Benefits
What an S corporation is, who can elect it, how income is taxed, and how to avoid losing the election.
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Basics · Partnerships and Form 1065
Form 1065 Basics: How Partnerships Are Taxed
An introduction to partnership taxation, including Form 1065, Schedule K, guaranteed payments, and capital accounts.
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Basics · Partnerships and Form 1065
How to Read a Schedule K-1
A guide to Schedule K-1 from partnerships and S corporations: what each part shows and how it flows to a Form 1040.
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Basics · Corporate Tax and Form 1120
Schedule M-1 Adjustments: Common Book-to-Tax Differences
The most common Schedule M-1 adjustments, permanent vs temporary differences explained, a line-by-line guide, and a full worked example.
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Basics · Business Deductions and Depreciation
MACRS Depreciation Basics
How MACRS depreciation works: recovery periods, conventions, and what Form 4562 reports.
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Basics · Business Deductions and Depreciation
Section 179 vs. Bonus Depreciation
Compare Section 179 expensing and bonus depreciation, including limits, business income rules, and how they work together.
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Basics · Business Deductions and Depreciation
The QBI Deduction (Section 199A) Explained
How the qualified business income deduction works, who qualifies, and what happens above the income thresholds.
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Basics · Corporate Tax and Form 1120
Net Operating Losses: How They Work
What a net operating loss is, how carryforwards work, and the 80% limitation.
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Basics · S Corporations and Form 1120-S
Reasonable Compensation for S Corporation Owners
Why S corporation shareholder-employees need a reasonable salary, and how to support the figure.
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Advanced · Partnerships and Form 1065
Inside Basis vs. Outside Basis in Partnerships
A detailed look at inside and outside basis, how liabilities affect them, and why the two can diverge.
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Advanced · Partnerships and Form 1065
Section 704(b): Substantial Economic Effect
How Section 704(b) tests partnership allocations, including the safe harbor, capital accounts, and deficit restoration.
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Advanced · Partnerships and Form 1065
Section 704(c): Built-In Gain on Contributed Property
How Section 704(c) allocates built-in gain and loss, and the traditional, curative, and remedial methods compared.
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Advanced · Partnerships and Form 1065
Section 754 Elections and Section 743(b) Adjustments
How a Section 754 election works, how the 743(b) adjustment is calculated, and when adjustments are mandatory.
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Advanced · S Corporations and Form 1120-S
S Corporation Shareholder Basis and Form 7203
How stock and debt basis are calculated, the ordering rules, and what Form 7203 requires.
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Advanced · Business Deductions and Depreciation
Section 163(j): The Business Interest Limitation
How the Section 163(j) limit works, including adjusted taxable income, the small business exemption, and carryforwards.
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Advanced · Corporate Tax and Form 1120
Section 382: NOL Limits After an Ownership Change
When an ownership change occurs, how the annual Section 382 limit is calculated, and how built-in gains affect it.
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Advanced · Capital Gains and Property Transactions
Section 1031 Like-Kind Exchanges
How 1031 exchanges defer gain on real property, including the 45-day and 180-day deadlines, boot, and qualified intermediaries.
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Basics · International Tax and Global Mobility
Resident or Nonresident? The Substantial Presence Test
How to determine U.S. tax residency for foreign nationals using the green card and substantial presence tests.
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Basics · International Tax and Global Mobility
Foreign Earned Income Exclusion vs. Foreign Tax Credit
Compare Form 2555 and Form 1116 for U.S. taxpayers abroad, with the key tests and trade-offs.
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Basics · International Tax and Global Mobility
FBAR vs. Form 8938: Foreign Account Reporting
The differences between FinCEN Form 114 (FBAR) and Form 8938, including who files, thresholds, and penalties.
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Basics · International Tax and Global Mobility
Tax Equalization for International Assignments
How tax equalization, hypothetical tax, and shadow payroll work for employees on global assignments.
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Advanced · International Tax and Global Mobility
PFIC Rules for U.S. Investors
What makes a foreign company a PFIC, how Section 1291 taxes investors, and the QEF and mark-to-market elections.
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Basics · Nonprofit Tax and Form 990
Form 990, 990-EZ, 990-N, or 990-PF: Which One to File
How to choose the correct Form 990 series return, with size thresholds, due dates, and the risk of revocation.
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Basics · Nonprofit Tax and Form 990
Public Charity vs. Private Foundation
How Section 509 separates public charities from private foundations, and why the public support test matters.
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Basics · Nonprofit Tax and Form 990
UBIT: Unrelated Business Income Tax for Nonprofits
When a nonprofit's income is taxed as unrelated business income, the main exclusions, and how Form 990-T works.
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Basics · State and Local Tax (SALT)
State Income Tax Nexus and P.L. 86-272
What creates state income tax nexus, how economic nexus works, and what protection P.L. 86-272 gives sellers.
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Basics · State and Local Tax (SALT)
State Apportionment Explained
How multistate businesses divide income among states, including single sales factor and market-based sourcing.
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Basics · State and Local Tax (SALT)
Pass-Through Entity Tax (PTET): The SALT Cap Workaround
How elective pass-through entity taxes work, why they exist, and what owners should consider before electing.
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Basics · Sales and Use Tax
Wayfair and Economic Nexus for Sales Tax
What the South Dakota v. Wayfair decision changed, how economic nexus thresholds work, and what sellers should do.
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Basics · Sales and Use Tax
Sales Tax vs. Use Tax: What's the Difference?
How sales tax and use tax work together, when businesses owe use tax, and how exemption certificates fit in.
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Basics · Property Tax
How Property Tax Is Calculated and How to Appeal
How local governments calculate property tax, what affects assessed value, and how the appeal process works.
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Basics · IRS Compliance, Penalties, and Ethics
How to Respond to an IRS CP2000 Notice
What a CP2000 notice means, how to review it, and how to respond before the deadline.
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Basics · IRS Compliance, Penalties, and Ethics
IRS Penalties: Failure to File vs. Failure to Pay
How the failure-to-file and failure-to-pay penalties work, and how first-time abatement can help.
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