Throwback Rule – Explained

by | Feb 23, 2025 | Business Taxation

What is the Throwback Rule?The throwback rule is a tax rule that allows a state to tax a corporation or business entity for the profits made in the state. Corporations, whose sales originate from certain states are subject to tax payment on those sales under the...

Business Tax Credit – Explained

by | Feb 23, 2025 | Business Taxation

What is a Business Tax Credit? Business tax credits refer to credits available to individuals and business owners when they file their annual tax returns. Businesses use credits to reduce or offset their tax liability. Generally, tax credits reduce the taxes an...

Surtax – Explained

by | Feb 23, 2025 | Business Taxation

What is a Surtax?Surtax refers to a tax that is charged on the tax itself. It can be ascertained in the form of a percentage of a specific amount or it can be charged as a flat dollar amount. Surtax is also called a tax surcharge.How Does a Surtax Work? A surtax is...

Carryover Basis – Explained

by | Feb 23, 2025 | Business Taxation

What is Carryover Basis?A carryover basis is a method used to determine an assets tax basis when transferring it to another person. The use of a carryover happens when an individual gifts another person the asset. In this case, the basis will generally be the same as...

Corporate Inversion – Explained

by | Feb 23, 2025 | Business Taxation

What is Corporate Inversion?Corporate inversion is a process employed by big companies that are based in the U.S., in an attempt to reduce the tax burden on income or gains. Basically, the company seeks to allocate income away from the country of incorporation to a...