Blog Posts:


  • Installment Sales, Escrow, and the Constructive Receipt Exception

    Introduction to Installment Sale Tax Rules In the realm of tax planning, installment sales stand as a strategic method for both individuals and businesses looking to defer taxes on profits from a sale.  By receiving payments over a period, sellers can align income recognition with cash flow, and manage their tax burden.  Yet, the installment…

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  • Why Do We Use the “Lag Method” to Deduct California Franchise Taxes?

    I once got a call (on behalf of another CPA) asking WHY an accrual-basis taxpayer’s deduction for California Franchise Taxes (“CFT”) must be taken on the “lag method.” In short, the “lag method” involves taking a deduction for the CFT in the year following that in which the taxable income arose from which it was…

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  • US Citizens/Residents Exercising Stock Options May be Exempt from Korean Income Taxation

    Not long ago, I came across a situation in which a US citizen/resident (“Client”) exercised stock options to acquire stock in a South Korean corporation (“KoreaCo”).  KoreaCo granted the options to Client as compensation for services that Client performed in the US during a prior year.  Client has never been an employee of KoreaCo and…

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