Deemed Partnership
The case of Holdner v Com TCM 2010-175 is giving me pause. When I read what William Holdner and his son Randal achieved over the years in business I am very impressed. Mr. Holnder seems a much sharper businessman than I am. It makes me hesitate to criticize him as an accountant, which he also is. It’s just that I think he picked an unnecessary fight.
Real estate election relief
If you have been posting negative numbers from real estate investments to your return on the theory that you or your spouse is a real estate professional, you should make sure that you have made the election. If not you may want to consider requesting relief. Furthermore, I generally believe in keeping tax returns indefinitely, but if you must dispose of some of them, be sure to keep the return for the year that you made the election. It is relevant for all future returns in which you are claiming its effect and I know from experience that you cannot rely on the IRS to preserve it for you.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.