By month: December 2009
Section 1237 grants a safe-harbor to qualified taxpayers who want to subdivide land. The safe-harbor requires the taxpayer to pass seven tests, but then rewards the taxpayer with tax-favored capital gains treatment (versus ordinary income treatment).
Good tax planning can avoid ordinary income treatment on the subdivision of land. The planning involves avoiding the partnership entity and using an S corp. for development.
Tracking and proving deductible expenses for three businesses requires good planning, but this planning can pay you for the effort.
The business bad debt generates the best bad debt tax breaks, except when the debt is incurred to protect, enhance, or continue your employee relationship (i.e, keep the corporation in business so you have a place to work).