The Cummings & Cummings Law Journal

Understanding the Nature of Legal Disputes Legal disputes can arise in various aspects of running a business. From intellectual property issues to contract disagreements, understanding the nature of these disputes is imperative for any business owner. Legal disputes can drain resources, damage reputations, and disrupt operations. It is crucial to recognize potential areas of conflict

Understanding the Role of Comfort Letters in Financing Transactions In the realm of financing transactions, comfort letters emerge as crucial documents, offering a form of assurance to parties involved in the transaction. These letters, often issued by accountants or auditors, serve to provide a level of confidence regarding the financial statements or other financial information

Understanding the Concept of a Stalking Horse Bid In the realm of bankruptcy auctions, the stalking horse bid plays a pivotal role in facilitating a structured and competitive sale process. A stalking horse bid is an initial bid on the assets of a bankrupt company, set by an interested buyer chosen by the debtor. This

Understanding Mixed-Use Properties Mixed-use properties are real estate holdings that serve both residential and commercial purposes. These properties are increasingly popular in urban and suburban areas, offering flexibility and maximizing the utility of the land. For tax purposes, understanding how to allocate depreciation correctly in these properties is crucial to comply with IRS regulations and

Understanding Disguised Partnership Transactions Disguised partnership transactions are transactions that, while not explicitly structured as a partnership, effectively operate as one. These transactions can significantly impact tax obligations and require careful scrutiny to ensure compliance with tax laws. The Internal Revenue Service (IRS) is vigilant in assessing these arrangements, making it crucial for businesses to

Understanding Key Person Insurance and Its Importance in Partnerships Key person insurance, also known as key man insurance, is a vital risk management tool for partnerships. This type of life insurance policy is designed to protect a business in the unfortunate event that a vital member, typically a partner or top executive, becomes incapacitated or

Understanding Subpart F Income Rules The Subpart F income rules, embedded within the U.S. Internal Revenue Code, are critical for tax professionals to understand, especially those managing the tax obligations of multinational enterprises. These provisions aim to prevent the deferral of certain types of income by U.S. shareholders of controlled foreign corporations (CFCs). By bringing

Understanding the Series LLC Structure The Series Limited Liability Company (Series LLC) is an innovative structure that provides flexibility and protection for real estate investors. Originating in Delaware, this structure allows for the creation of separate “series” or cells within a single LLC. Each series operates independently with its own assets, liabilities, and members, effectively

Understanding Small Business Tax Credits Small business tax credits are essential tools that can significantly reduce the tax liability of a small business. Unlike tax deductions, which reduce taxable income, tax credits directly reduce the amount of tax owed, often on a dollar-for-dollar basis. This can be particularly beneficial for small businesses looking to maximize

Understanding the Importance of Tax Planning Tax planning is a crucial component of business strategy that allows companies to minimize their tax liability within the legal framework. By proactively managing tax obligations, businesses can ensure compliance while optimizing their financial health. Effective tax planning involves a comprehensive understanding of tax laws and regulations, which can

What is Pass-Through Taxation? Pass-through taxation is a tax mechanism that allows business income to be taxed at the individual owner’s personal tax rate rather than at the corporate level. This taxation structure is notably beneficial for small and medium-sized business owners looking to avoid the double taxation that C corporations typically face. In essence,

The expansion of accounting firms into legal services in the United States is a direct response to evolving regulatory frameworks and strategic business imperatives. Historically, stringent state bar and accountancy rules prohibited non-attorneys from owning law firms and non-CPAs from owning accounting firms. However, recent changes in certain jurisdictions have facilitated new business structures that

As the tax deadline approaches, many filers find themselves in need of last-minute assistance. While professional tax advisors typically charge for their services, there are still reputable ways to obtain free guidance. Here is how taxpayers can find trustworthy help without falling victim to misinformation or scams. 1. The IRS Website and Interactive Tools The

Form 1065, U.S. Return of Partnership Income, is the IRS tax form used by partnerships to report income, deductions, gains, losses, and other financial information. Since partnerships are pass-through entities, they do not pay taxes at the entity level. Instead, the tax obligations pass through to individual partners, who report their share of the income

A recent inquiry raised important questions regarding the enforceability of home replacement contingencies in real estate contracts. The scenario involved a seller who was simultaneously attempting to sell an existing home and purchase a new residence. Due to unforeseen circumstances, namely, the loss of employment, the seller was no longer able to proceed with the

The expectation that attorneys should be available at all hours of the day and night is, in large part, a product of fictionalized portrayals of legal work in popular media. While certain practice areas—such as criminal defense and those indicating emergency injunctions—necessarily require after-hours availability, the notion that all attorneys must be hyper-responsive at all

Filing taxes is one of those annual tasks that most people dread. But beyond the stress and paperwork, many taxpayers operate under misconceptions about the process—some of which can lead to frustration, missed opportunities, or even costly mistakes. As an experienced tax attorney and CPA, I have witnessed firsthand how these misunderstandings can create unnecessary

From the perspective of an experienced first-party insurance attorney who has handled numerous property damage claims—including those arising from catastrophic wildfires such as the Marshall Fire in Louisville, Colorado in December 2021—homeowners often make critical errors when filing and attempting to resolve their claims. These mistakes can lead to unnecessary delays, denials, or underpayments. Below

With tax season around the bend, I have compiled a few pointers on the mortgage interest tax deduction for U.S. taxpayers. What is a Form 1098? The 1098 is an IRS form that reports the amount of mortgage interest paid by a homeowner during the tax year. Lenders (banks and mortgage companies) provide this form

Recently, someone shared this Reddit post with me and requested my take. The poster described how their “[l]andlord locked the thermostat in the middle of winter to ‘prevent’ the boiler losing pressure . . . It still drops pressure leaving us without heating or hot water every few days” and posted a photo of a