by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
A trade or business exists when the taxpayer engages in an activity with a profit motive and participates with continuity and regularity. Profit is not required every year, but the taxpayer must make ongoing, good‑faith efforts to operate the activity for income....
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Rental income is generally taxable, and allowable rental expenses reduce that income. The result is either a rental gain or a rental loss. Most rental real estate is reported on Schedule E, unless the taxpayer provides substantial services, in which case the activity...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
A portion of Social Security benefits becomes taxable when a taxpayer’s provisional income exceeds certain thresholds. The taxable amount depends on filing status, total benefits received, and all other income. Provisional Income Provisional income is calculated as:...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Distributions from retirement accounts are generally taxable except for the portion representing the taxpayer’s basis. Basis is the amount of after‑tax contributions remaining in the account. When a distribution includes basis, that portion is a tax‑free return of...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
A corporation may distribute property to its shareholders. When the distribution is paid from earnings and profits, it is classified as a dividend and is taxable. Corporations must report dividends of $10 or more on Form 1099‑DIV. Partnerships, S corporations,...
by Turquoise Tax Systems | Jun 17, 2026 | Individual Tax
Interest is compensation for the use of money. It is generally earned from deposit accounts, investments, loans, and certain financial instruments. Most payors issue Form 1099‑INT when they pay $10 or more of interest. Partnerships, S corporations, estates, and trusts...
