Blog Posts:
-
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…
-
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…
-
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…
Tag List:
Accounting Methods (2) All Events Test (1) California (1) California Franchise Tax (1) Constructive Receipt (1) Deemed Gain (1) Earnout (1) Economic Performance Test (1) Foreign Tax (1) Income Tax (2) Income Tax Treaty (1) Installment Sale (1) International (1) Korea (1) Option (1) Option Exercise (1) Section 461 (1) Source of Income (1) Stock Grant (1) Tax Planning (1)