• Huddleston Tax Weekly

A Primer on Disregarded Entities

Disregarded Entities If you spend a substantial amount of time around tax professionals, there’s a decent chance you will encounter the phrase “disregarded entity” at one point or another. This phrase, fear-inspiring though it sounds, is a fairly straightforward concept which has relevance in a variety of contexts. In this article, we will introduce disregarded entities and explain... [Read more of this post]

Delaware Statutory Trusts Increasingly Popular as Real Estate Investment Opportunities

Delaware Statutory Trusts There is a number of ways to hold title to real property. Perhaps the most common way is to hold full title – or “fee” simple title – as an individual or married couple. Title to real property can also be held jointly by multiple corporate or individual persons. One increasingly common means to jointly hold title to an investment property is to use a so-called Delaware... [Read more of this post]

Combining Sections 121 & 1031 for Optimal Tax Treatment

Sections 121 & 1031 As we’ve noted before on HTW, Section 1031 of the IRC applies specifically and exclusively to real property used for business or investment purposes. Section 121, on the other hand, applies to primary residences, and can be utilized to eliminate substantial capital gain upon the sale of one’s property (up to $250,000 for single filers and $500,000 for married filing jointly).... [Read more of this post]

Bitcoin, Taxes & Statehood

Bitcoin: Stateless Currency In our earlier post about the taxation of bitcoin, we pointed out the fact that bitcoin taxation brings up a number of potentially problematic, complicating issues. For one, we mentioned that there could be issues with bitcoin’s basic classification as “investment property” given that it is a digital currency. There could be many, many other issues presented by the... [Read more of this post]

A Basic Introduction to Reverse Section 1031 Tax Deferred Exchanges

Here on HTW, we’ve spent considerable time and effort exploring the complexities of Section 1031 tax deferred exchanges. And this is for good reason: if performed correctly, a 1031 like-kind exchange can be an extremely useful wealth maximization tool. Like-kind exchanges not only allow taxpayers to defer the capital gain taxes which would normally be owed, they also allow more capital to be reinvested... [Read more of this post]

The Debate to Preserve or Eliminate Section 1031

Real Estate 1031 Exchange As lawmakers of the federal government struggle to deal with our ever-increasing national debt, Section 1031 of the Internal Revenue Code has come under scrutiny and may face extinction. Now that Republicans control both sides of the Congress (and the White House), Section 1031 could be seriously threatened if GOP lawmakers feel that reducing or eliminating the advantages... [Read more of this post]

The (Relatively) Uncharted Territory of Bitcoin Taxation

Taxation of Bitcoin Though still largely unfamiliar to the general public, the cryptocurrency known as “bitcoin” has received more and more attention in the last several years. This is due in part to its impressive rise in market value — as of today, bitcoin’s market value fluctuates in the low $4,300 range, but only a few years ago it was exchanged for just a fraction of that amount.... [Read more of this post]

Towne v. Eisner & the Definition of Income

Income Tax As counter-intuitive as it may seem, many of the most basic terms in tax law were being argued and debated as recently as one century ago. We tend to think of many terms in tax law – particularly very elementary terms such as “property” and “income” – as things which simply emerged with fixed definitions, presenting little or no controversy since their inception. Here at HTW,... [Read more of this post]

Cuts to Benefit Programs Indispensable to Trump’s New Budget Plan

Trump’s Budget Plan As we discussed in our feature article on Trump’s tax reform proposal, President Trump’s plan is to consolidate the existing tax bracket structure by reducing the number of brackets from seven down to three. This consolidation will positively impact very high earning Americans and negatively impact many middle earning Americans; those at the top will receive a cut, while... [Read more of this post]

A Few Thoughts on Seattle’s New Tax on the Wealthy

Seattle’s New Tax on Wealthy Residents On Monday, July 10, the Seattle City Council unanimously approved a new city income tax targeted toward Seattle’s highest-earning residents. The new tax will collect 2.25 percent on incomes above $250,000 for individuals and $500,000 for married couples filing jointly. Expectedly, the measure has received a great amount of both positive and negative feedback. As... [Read more of this post]

Huddleston Tax CPAs of Seattle & Bellevue
Certified Public Accountants Focused on Small Business

(800) 376-1785
40 Lake Bellevue Suite 100, Bellevue, WA 98005

Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching, Quickbooks consulting, bookkeeping, payroll and business valuation services for small business. We serve Seattle, Bellevue, Redmond, Tacoma, Everett, Kent, Kirkland, Bothell, Lynnwood, Mill Creek, Shoreline, Kenmore, Lake Forest Park, Mountlake Terrace, Renton, Tukwila, Federal Way, Burien, Seatac, Mercer Island, West Seattle, Auburn, Snohomish and Mukilteo. We have a few meeting locations. Call to meet John Huddleston, J.D., LL.M., CPA, Tawni Berg, CPA, Jennifer Zhou, CPA, Jessica Chisholm, CPA or Chuck McClure, CPA. Member WSCPA.