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Most Recent Posts

Are CVS Stores Actually Good 1031 Targets ?

Are CVS Stores Actually Good 1031 Targets ?

The Indiana Board noted that this difference was consistent with CVS’s claim that it used sale-leaseback transactions to sell more than just the ownership rights in its properties; rather, it used those types of transactions as a means to generate additional business capital from investors.

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Blame It On the Lawyers – Creating Basis Out Of Thin Air Not The Taxpayer's Fault

Blame It On the Lawyers – Creating Basis Out Of Thin Air Not The Taxpayer's Fault

There is no statute of limitations if the returns are fraudulent.  That is what the IRS was arguing about the BASR partnerships.  It gets a little sticky though.  The Court did not have any problem agreeing that the professionals involved in the scheme were as Holden Caulfield would say “phony bastards”.  The actual partners, though, were just plain folks, they were relying on the professionals to do the right thing.

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JD Salinger Really Was A Park Avenue Rich Kid

James Gould Cozzens had quite a bit in a common with JD Salinger.  He was a bit older, born in 1903 as compared to Salinger’s 1919.  He was a prep school kid and college drop-out who achieved early literary success.  Cozzens was never part of the New York literary scene.  His wife Sylvia Bernice Baumgarten was a literary agent and took care of all that for him.  Their “seclusion” was about two hours from New York in Lambertville, NJ. 

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Court Rules Against Slots Playing As A Business

Court Rules Against Slots Playing As A Business

Generally speaking the courts will not second guess your money making ideas.  Trieu M. Lee and his spouse played the slots using the principles of Feng Shui and were recognized as engaging in a trade or business by the United States Tax Court.  You have to be ready to show, however, that you are modifying your plan based on experience.  Other trappings of business such as separate accounts are also very helpful.  All in, when you are claiming gambling as a trade or business, you are really taking a chance.  I guess you are used to that or you would have just gotten a part-time job.

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Has Kent Hovind Given Up Fight Against IRS ?

Has Kent Hovind Given Up Fight Against IRS ?

Many accounts of Kent Hovind’s travails conflate two separate issues.  One is his civil tax liability and that of his wife.  According to the Tax Court decisions in their cases, it appears that they were not filing income tax returns based on the theory that everything belonged to their ministry.  The negative outcome in those cases mean that the Hovinds owe a lot of  taxes, penalties and interest, but that is not why Kent Hovind is in prison.

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Musician Wins Hobby Loss Case

Revenue agents have the same educational background as CPAs, so I fancy that I can see things from their point of view.  In 2008 and 2009 Mr. Gullion and his wife had income somewhat over $100,000 per year which was sheltered by losses from his music business.  From 2004 to 2010, total losses were over $130,000 with gross revenue of just over $13,000 (in total for all those years).  It is going to be hard to get a no-change audit out of those numbers.  Also with those numbers, I bet my most loyal commenter, Robert Baty, a retired IRS appeals officer, already has Mr. Gullion locked up and is contemplating what to do with the key.

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