One of the things which makes tax law such a fascinating field is that it forces you to formally analyze many terms which are casually – and often carelessly – used in everyday conversation. In common parlance, terms such as “income,” “gain” and “property” are understood intuitively and require
Hylton v United States & the Practical Difficulties of Apportionment
In early June of 1794, Congress passed a “carriage tax” aimed at carriages used for business purposes. The tax was to be collected annually for as long as the person in question owned the carriage. The original constitution of the U.S. recognized a distinction between direct taxes and indirect
What Is Disposable Income?
One of the most important things you can do to improve your overall quality of living is to sit down and determine how much disposable income you have available to you on a regular basis. The first challenge is an inherent one and that comes from misconceptions on what the term really means. It
Armory v Delamirie & the Evolution of Property Rights
It's a time-honored recess tradition that should a group of kids find something on the ground, then "finders, keepers" is the binding contract. Despite how silly it may sound, this is effectively what Armory v Delamirie sought to define: what constitutes, and who can claim, ownership of an object.
How To Reduce Taxes For Retirement
If you're looking to reduce your taxes so that you can save up enough for a nice retirement, there are a few ways you can do this. 401k Options One thing you can do now, to help save for retirement is to use your 401k plan. Specifically, you can use something called a “partial in-service
Gregory v Helvering & the Old Roots of Modern Financial Duplicity
Gregory v Helvering (1935) is not the most well-known financial case, yet this Great Depression-era piece of litigation is fascinating for a number of reasons. Perhaps the most notable reason for its appeal is its relevance to more modern financial scandals. Although this case is almost a century
United States v Winthrop & the Test for Ordinary Income
United States v Winthrop (1969) is a case in which the court rejected the capital gain classification and ruled that certain transactions were sales made in the ordinary course of business. Understanding the distinction between business income and capital gains is critical for any taxpayer as
The Ideal Small Business Budget Breakdown
A budget breakdown is one of the most crucial segments of a business plan. It is a skill that every small business owner needs to stay informed on the sales cost, reinvestment budget, and to know when you are financially ready to bring in employees into your business. Setting a budget also enhances