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Most Recent Posts

National Republican Senatorial Committee Calls Clergy Housing Benefit A Tax Dodge

This is not a case of someone stretching the law or finding a questionable loophole.  Chastising Warnock for receiving a tax-free parsonage allowance would be equivalent to criticizing him for buying tax-exempt bonds or paying capital gains rates on his capital gains.  It is not hypocrisy to advocate for higher taxes while taking full advantage of the existing provisions in the code. 

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New York AG Report – Lots Of Lies – Not A Lot Of Federal Tax Avoidance

The “before” value creates most of the controversy. There is a mini-industry of syndicated conservation easements that is based on fantasy valuations. I have written a lot about the issue.  When you overstate the “before” value of a property, you can end up understating your tax liability by inflating your charitable deductions.  That is the income tax issue in the complaint.

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Tax Court Upholds $70,000 In Frivolous Return Penalties

Tax Court Upholds $70,000 In Frivolous Return Penalties

Judge Lauber closes with a warning to Mr. Clarkson that reminds me of a story I heard many times from those older than me.  The story was that if they were spanked at school, they would keep quiet about it, because if their parents heard about it, they would be spanked again

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Church State Tax Roundup With Emphasis On Parsonage Issue

Church State Tax Roundup With Emphasis On Parsonage Issue

In the classic case of the parsonage next door to the church, where the minister is required to live, 107(1) seems to duplicate Section 119 – Meals or lodging furnished for the convenience of the employer.  There were religious liberty concerns about the level of scrutiny that might be required in applying 119 to a church so a broader exemption was created.  This was in the twenties which you might infer from the non-inclusive language. The cash exclusion came into effect in the fifties

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Appeal Of $90 Tax Court Decision Shows Passion Of Pro Bono Attorneys

Appeal Of $90 Tax Court Decision Shows Passion Of Pro Bono Attorneys

Ms. Grajales filed form 1040EZ, which has no place to report income form pension plans.  It is understandable since she figured she had just borrowed money. If I had been doing the return I would have tried to have the argument with New York State about taxability before filing.  I’d like to think that I would have ended up reporting the gross distribution on 1040 with a lower taxable amount maybe attaching something to go with it.  That homage to computer matching might have avoided the problem entirely.

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Peter Hendrickson Responds To Lauber Opinion In Clarkson v Commissioner

Peter Hendrickson Responds To Lauber Opinion In Clarkson v Commissioner

The fact is, to the degree that it is not simply an escape hatch from the inappropriateness of the entry in which it is placed, this reference to “Zero Returns” is nothing more than a cheap effort to smear the inconvenient filings which the IRS so desperately wishes to discourage, by suggesting that they are of a kind with returns filed in years past by adherents of various misunderstandings who did indeed fill in 1040s as described above. (

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Way Out Of State Tax On Student Debt Forgiveness

There are two other features to the plan that will make a real difference to Taylor.  The income based repayment amount will be cut from 10% to 5% and the exempt non-discretionary income will be raised. Taylor’s payment will go down. In addition interest will not exceed the income base repayment, so the loan balance will not grow.  So if Taylor begins to prosper they will not have a mountain of debt to deal with.

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Opportunity Zones – What Are They Good For?

The OZ program has attracted a great deal of criticism over its efficacy and lack of transparency. We argue that the core deficiency of the program is that it lacks a clearly defined purpose. It was initially created to spur entrepreneurial activity and support small businesses in low-income areas, but as implemented it appears to primarily benefit real estate investors.

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