Most Recent Posts
Newt Gingrich May Beat The Obamacare 3.8% Tax – Can You ?
If year after year after year your adjusted gross income is below $200,000 do you need to be concerned about this ? You may. The reason is that you may sell your business someday. In that year, your adjusted gross income might be very high. Will the gain from the sale of the business be subject to NIIT ? It depends on whether you have materially participated in the business or not. If you have never worried about material participation, up to that point, it may be tough to prove. As we used to say at the close of the meetings of Troop 193 – Be Prepared
Sprint Racing Driver Can’t Convince Tax Court He Is In It For The Money
His other problem, which is common in hobby loss cases was not having a business plan. Also, they gave him good marks for keeping thorough records, but they saw the goal of his record-keeping to be focused on substantiation of tax deductions rather than on getting good information to correct his business plan. This is a pretty common criticism of people who lose hobby loss cases. What you are supposed to do is alter your behavior if you are losing money. If you keep on making the same mistakes and losing, you were not really trying and will lose in Tax Court. If you keep on making new mistakes, then maybe you have a chance.
Although they have not racked up the truly impressive record of Amway IBOs for losing in Tax Court, people who race cars have not done too well lately in hobby loss cases. If you are involved in car racing and showing consistent losses, start working on your business plan. And if they take a picture of you behind the wheel, make sure you are not smiling.
Who Should Be Accelerating Income Into 2012?
If the corporation does not have earnings and profits, the sting tax does not apply. You get rid of earnings and profits with a dividend. If you have been procrastinating on getting on the road to avoiding double taxation, this might be an opportune time. There are some really ugly stories about people who never got around to it.
Is Costco’s Jim Sinegal A Hypocrite ?
I have to say I appreciate the Wall Street Journal thinking about the little guys like me, the potential victims of this upcoming onerous tax. I hate to point out that I don’t think it is really that big a deal to the low six figure plodders who get the brief time in the sunlit lands over a quarter million in AGI. You really have to have quite a bit in invest-able assets outside retirement accounts for the new tax on investment income to sting an awful lot. Regardless of that, I think the condemnation of Mr. Sinegal is ridiculous.
Bill O’Reilly Likes Wealth Tax Idea Even Less Than I Do
I am going to study the Hill segment more closely so I can learn to do interviews. I naively thought that you should come up with a pretty good question and then kind of listen to what the interviewee said. Apparently what you need to do is to continually interrupt them and tell them that their ideas are ridiculous. Live and learn.
CRS Refuses To Disclose Who Requested Withdrawal Of Report On Marginal Rates
The argument that high marginal tax rates will discourage economic growth strikes me as pretty compelling. I see the logic of it. There is this nagging problem,...
Educational Assistance Foundation for The Descendants of Hungarian Immigrants in The Performing Arts – Can’t Make This Stuff Up
Originally published on Forbes.com Nov 28th, 2012 Educational Assistance Foundation for The Descendants of Hungarian Immigrants in The Performing Arts, Inc. (EAFDHIPA...
S To LLC As A Fiscal Cliff Acceleration Strategy ?
I hate to plan for "might be" tax changes. Nonetheless, the situation we find ourselves in now requires it. There is a decent chance that there will be game changing...
Joint Returns Need Warning Labels
Theresa Karam was denied innocent spouse status by the Tax Court and has lost on appeal to the Sixth Circuit. There is a very interesting twist to her case. Her...
IRS Position On Wandry Decision Makes 2012 Gifting More Difficult
The IRS has thrown a significant road block into planning for large 2012 gifts. Our transfer tax system , gift and estate taxes, is unified. There is a credit...