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TIGTA Alimony Report May Cause Crisis Of Conscience Among Tax Professionals

TIGTA Alimony Report May Cause Crisis Of Conscience Among Tax Professionals

The bottom line is that I used to believe that when I was telling people to do the right thing, I was also telling them to do the smart thing – that the risk of non-compliance outweighs the benefits.  That confidence has been eroding in me for some time with respect to people who just want to maximize their lifestyle and are not too worried about their credit rating, but knowing now that something so blatantly wrong will more than likely slide by, not because the IRS can’t find it, but just because they lack the resources to look into it is very disturbing.

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Real Estate Dealer Or Investor – Can’t Switch At Drop Of Hat

Real Estate Dealer Or Investor – Can’t Switch At Drop Of Hat

I’m just a lowly CPA, but I think a critical point was missed in the decision.  The Court attributes everything that happened from 2002 on to Mr. Boree.  If Glen Falls LLC was a partnership up till 2005, what happened before then was not relevant.  Mr. Boree gets a fresh start in his purpose in holding the property at the deemed liquidation of the partnership.  By conflating the two, the Tax Court appears to be contradicting its holding in the Phelan decision.  Of course, it appears that Mr. Boree did not really take advantage of the fresh start.  Nonetheless, I think that more careful planning and the introduction of one or more special-purpose entities might have enabled Mr. Boree to achieve capital gains treatment on a significant part of the transaction.

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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.