#LegalBytes: The Official Podcast of Cummings & Cummings Law

The Step Transaction Doctrine is one of the IRS’s most powerful tools to challenge tax planning strategies. This doctrine allows the IRS to collapse multiple steps into a single transaction if those steps lack independent economic significance. Read more: https://www.cummings.law/understanding-the-step-transaction-doctrine-in-tax-law/

Puerto Rico’s tax incentives under Acts 20, 22, and 60 provide some of the most powerful opportunities for reducing tax burdens available. These laws, known offer benefits such as a 4% corporate tax rate for export services (Act 20) and a 100% exemption on dividends, interest, and capital gains for individual residents (Act 22). Read more.

Partnerships are a simple and flexible way to run a business, but they carry significant legal and financial risks. We also cover the importance of drafting a comprehensive partnership agreement, strategies for managing risk, tax compliance considerations, and methods for resolving disputes between partners. Visit our firm website at www.cummings.law.

Startups need a strong legal foundation to operate effectively and protect their interests. This video covers the essential legal documents every startup should have, including Articles of Incorporation or Organization, Operating Agreements, NDAs, Intellectual Property Assignment Agreements, Employment Agreements, and more. Visit our firm website at www.cummings.law.

Electing Subchapter S taxation allows qualifying corporations and LLCs to avoid double taxation by passing income, deductions, and credits through to shareholders. This podcast explains eligibility requirements, the IRS Form 2553 filing process, deadlines, and the pros and cons of S corporation status. Visit our firm website at www.cummings.law.

This podcast explains the complete liquidation of an S corporation, covering both corporate- and shareholder-level tax consequences. It outlines how asset sales or distributions are taxed, including built-in gains, depreciation recapture, and special installment sale rules. The discussion highlights common misconceptions and planning opportunities. Visit our firm website at www.cummings.law.

Converting a 1099 contractor to a W-2 employee mid-year is a decision with serious tax and compliance implications. This podcast explains the IRS classification rules, payroll tax requirements, unemployment insurance, workers’ compensation, and the impact on benefits and retirement plans. Visit our firm website at www.cummings.law.

Cooperative business structures offer a unique and equitable approach to business, prioritizing member needs and democratic governance. However, the tax considerations associated with cooperatives are complex and require careful attention. Visit our firm website at www.cummings.law.

Purchasing assets out of bankruptcy can unlock significant value—but it comes with legal and procedural complexity. This podcast demystifies the bankruptcy process, the role of the trustee, due diligence, bidding mechanics, court approval, and how to address liens. Learn how an attorney-CPA team can help you seize the opportunity while avoiding costly missteps. Visit our firm website at www.cummings.law.

House hacking offers powerful tax advantages—but only if you know how to use them. This podcast covers deductions, depreciation, allocation of personal vs. rental use, and how to preserve Section 121 exclusion eligibility while earning rental income from your primary residence. Visit our firm website at www.cummings.law