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Most Recent Posts

Brooklyn Grandmother Wins On Dependency Exemption

Brooklyn Grandmother Wins On Dependency Exemption

The argument that the IRS was putting forward was the “tie-breaker” rule.  If E.P. was claimed by both Ms. Coultman and her daughter, the tie-breaker rule would give the exemption to the parent.  Ms. Coultman did not believe that her daughter, who was not employed during 2008, claimed E.P.  The IRS argued that she had, but was unable to introduce any proof.

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Book On New Jersey Wines Does Not Support Deducting Trips To France

Book On New Jersey Wines Does Not Support Deducting Trips To France

Professor Westrich was able to point to a publishing success that might make his years of research profitable.  Unfortunately, the Tax Court did not think that writing “The Wines of New Jersey” required annual trips to France for nearly a decade.  When I think New Jersey and wine, the thing that pops into my mine is Boone Farm Wine.  That was one of the favorite wines in Fairview in the early seventies.  It was really good after a couple of joints – that’s what I was told by some people anyway.  Apparently, the Garden State has a strong viticulture tradition which Professor Westrich documents.  Who knew?

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Searching For A Little Piece of New Jersey In Virginia

Searching For A Little Piece of New Jersey In Virginia

The Park Service event was very impressive.  Mr. O’Reilly gave us quite a speech about how rigorous it was going to be.  Two miles in and two miles out some of it through dense forest.  He probably exaggerated just a bit to be on the safe side.  We stopped periodically and he or Ms. Parnicza talked about what had happened on that very spot.  They showed us how we were out of sight of the road which added to the confusion.  Some of the hike was over land owned and farmed by the Hawkins family, both then and now. 

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Ohio Businesses Should Brace For Use Tax Tsunami

Ohio Businesses Should Brace For Use Tax Tsunami

The Ohio use tax has only been on the books since 1936.  It takes a while for the word to get out.  So when the state decided to get serious about collecting use tax from the over 300,000 businesses that look like they should be paying it, they started with an amnesty program, which ended yesterday – May 1, 2013

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Tough IRS Position Means More Trusts Will Get Hit With New ObamaCare 3.8% Tax

Tough IRS Position Means More Trusts Will Get Hit With New ObamaCare 3.8% Tax

The companies involved in the ruling were making money, but the passive activity rules were relevant because of an AMT gotcha, that references the passive activity loss rules. In computing alternative minimum taxable income, research and development costs have to be capitalized and amortized over ten years if you are not materially participating in the activities. 

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Fifth Avenue Inspirational Shopping Not Doing Business

Fifth Avenue Inspirational Shopping Not Doing Business

Although it was not mentioned in the ruling, it would probably be a really bad idea for New York to assert that activities like that would create corporate nexus.  It would put a serious dent in convention business if sending your people to a trade show would create nexus.  Trying to tax corporations because they send people to your state to look at what they might want to buy there would be really dumb.  Dumber than New York turned out to be:

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To Attack Abortion, Kansas Mucks Up Its Tax Code

To Attack Abortion, Kansas Mucks Up Its Tax Code

One of my great wishes is that taxation should be declared the Switzerland of the culture war.  Setting tax policy to raise the right amount of revenue without distorting the economy is challenging enough without bringing other issues into it.  Also, it is more or less likely that you will do more harm to your cause than good by attacking the other side with tax provisions.  It seems though that fighting the culture war with tax provisions is an irresistible impulse.  Kansas has just succumbed.

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