Most Recent Posts
Real estate election relief
If you have been posting negative numbers from real estate investments to your return on the theory that you or your spouse is a real estate professional, you should make sure that you have made the election. If not you may want to consider requesting relief. Furthermore, I generally believe in keeping tax returns indefinitely, but if you must dispose of some of them, be sure to keep the return for the year that you made the election. It is relevant for all future returns in which you are claiming its effect and I know from experience that you cannot rely on the IRS to preserve it for you.
Pigs Get Fed
“Pigs get fed. Hogs get slaughtered.”. I tried to research the origin of the expression and the claims of origin I found all post dated my first exposure to it. As one of my partners commented we really had no idea if there was any agricultural reality to the expression. Unlike some other expressions (“Same difference” “No harm. No foul.”), though, I had a pretty clear idea of the inherent advice. It was that you should be aggressive, but not too aggressive.
Need Form for Dependency Deduction
Thus, without her signature on a form that releases her claim to the dependency exemption deduction, petitioner failed to satisfy section 152(e)(2)(A) and may not claim L.W.K. for the purpose of receiving the exemption.
LLC Member Not Presumed to be Passive
This was originally published on PAOO on August 30th, 2010. In Action On Decision 2010-002 the IRS acquiesced in a Court of Claims decision (Thompson v. US 104...
Sorry We’re The Tax Court Not Divorce Court
The moral of the story is that taxpayers and advisers need to look at joint returns, not as a simple exercise of what produces the lowest total tax, but also consider the implications of joint and several liability. There is some relief available, but it is by no means assured.
Should Mass Same Sex Couples Consider Amending Returns ?
The Justice Department was required to defend DOMA, even though the Obama administration has indicated that it would favor its repeal. They refused, however, to advance any of Congress’s reasons for passing the bill in the first place.
LLC or S Corporation – Six of One A Dozen of the Other
PLR 20107019 has a unique wrinkle though. Its tax distribution plan is based on making distributions in proportion to ownership at the time that the taxable income is generated rather than based on ownership when the distribution is declared
You’ve Got Your Aliens and Then There’s Your Real Aliens
You’ll be glad to know that failure to gain exempt status has not silenced the Pleiadians. You can read all about them at http://pleiadians.net/
Divorcing Spouses Should be Careful About Joint Returns
Another reason not to file a joint return is that you or your soon to be ex, though he or she might be honest as the day as long, may have a high audit potential. One of you might, for example, be involved in a lot of flow-through entities or family businesses
Credit Card Rebates May Yield Charitable Deductions
I will sometimes see organizations sending out acknowledgments that do not meet the substantiation guidelines of the regulations. They are not being nice to their donors when they do that and they are indicating, at least to me, that there is at least one area where they are not on the ball.