Author Archives: Nate

Financial Statement Review

Most companies produce financial statements on an annual and quarterly basis. The main five statements that are reported are the: Audit Report Balance sheet Income statement Statement of cash flows Statement of shareholder’s equity Statement of comprehensive income Footnotes SEC Filings and Company Reports 10-K Annual Report(a 20-F for foreign registrants). This is due within…

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Shareholder and Corporation Basis, Built-In Loss Property, and Holding Period

Basis at the Shareholder and Corporation Level Basis at the Shareholder Level As a general rule, it’s a substituted basis. The shareholder transfers assets to the corporation and whatever basis the shareholder had in those assets is the basis they have in the stock, so it’s a substituted basis. A realized gain is not recognized…

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What is Section 1231 Property or 1231 Assets?

The term “section 1231 property” or “1231 assets” is a tax term that refers to depreciable business property that has been held for over one year. The types of properties included in Section 1231 are machinery, land, cattle, timber, buildings, natural resources, crops, and leaseholds that are at least one year old. Here’s a more…

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