Most Recent Posts
If You Held Bitcoins In 2017 Put Your Tax Return On Extension
You send the public identity of your accounts to Node40 or bitcoin.tax or libratax.com and they produce a capital gains schedule for you. Perry says you should definitely use Node40. They are better because they use specific identification. He admitted that if I called up any of the other companies (there are more than the three I mentioned), they will have a story about why they are better. My advice at this point is to shop around and do an assessment as to whether the report you get seems to make sense. Here’s the thing. If you go to this trouble and report something you will probably be in the top tier when it comes to compliance. If your transaction volume is not very high, you should be able to do it yourself.
Why President Trump’s Rich Friends Might Have Been Mad About The Tax Act
And then we come to acquiring a building. You and I each acquire $2,000.000 properties to run our business out of. In both cases the land is worth $500,000. You hire a cost segregation specialist to break out the five and fifteen year property. So maybe 30% of your $1.5 million in basis is depreciated more rapidly than the excruciatingly slow 39 year life that a building is written off over. Being penny wise and pound foolish, I begrudge the few thousand dollars to the tax savvy engineer. Does that mean that I have elected to depreciate the whole smash over 39 years?
Not in so many words, but that is effectively what Mr. Egerton and Mr. Weissenberg say is the case from a practical viewpoint. Why can’t I relying on the Cohan rule and do a kind of back of the envelope computation? If my client gets audited, let the IRS send in their own engineer. How wrong can it be?
The Baby Holm Case Is Not A Legitimate Sub-discipline Of Hovindology
The Baby Holm case seems to have taken a hold on Hovindologists. I have followed it pretty lightly. It is not a tax case which at however a removed level is the...
Grain Glitch Fix Unfair To Worker Cooperatives – And Stormy Daniels Tax Update
Originally published on Forbes.com. It looks like I will be getting smacked on the side of my head with one of my own laws. Reilly's Third Law of Tax Planning - Any...
Stormy Daniels And The $130,000 – Based On Agreement, I Call It Capital Gain
I’ve been able to come up with three possible positions I would have taken on Stormy’s return. This is the type of thing that would have made for a great tax season at Joseph Cohan & Associates in the 1980s, when we could still smoke in the office and before the Clarence Thomas hearings had introduced an almost Victorian propriety into office environments. First, a little background.
The Hazards Of Being Kent Hovind
I'm really pleased to have Lamar Smith back with a guest post. _________________________________________________________________________ In the opening...
Last Of The Pensacola Properties Will Be Applied To Kent Hovind’s Criminal Penalties
The mills of the gods grind slowly, but they grind exceeding small. Well the mills of the IRS are still grinding Kent Hovind as we see from a new flurry of...
New Tax Law Immediate Write-Off Increases Demand For Tax Savvy Engineers
One thing that troubles me about these discussions is that the implication is that cost segregation is some sort of election. In principle, if there is all sorts of five-year property mixed in with your building, you really should break it out to file an accurate return. Also, in principle, the Cohan rule should apply, if you are too thrifty to hire an engineer.
I discussed the application of the Cohan rule (Named for the famous Broadway producer who was too much of a yankee-doodle dandy to keep track of his receipts) with Mr. Bagne. One of the things he admitted was that if somebody was knocking out multiple copies of the same sort of building, they should be entitled to a pretty deep discount on subsequent studies after the first one. Applying that logic I could see some developers taking the function in-house, although I suspect it might not be worth the trouble.
Forfeited Deposit Income Ordinary Not Capital Gain
Why Capital Gain?
Code Section 1234A provides that gain or loss attributable to the cancellation, lapse, expiration or other termination of a right or obligation which is or would be a capital asset in the hands of the taxpayer shall be treated as gain or loss from the sale of a capital asset. Well, there you have it. If CRI-Leslie had sold the hotel it would have gotten capital gain treatment on the sale. Nobody questions that. So it should get capital gains treatment on the forfeited deposit it got to keep if you follow along with Code Section 1234A.
Why Not Capital Gain?
There is this subtle nuance, that can be quite important, but is often ignored. CRI-Leslie was not just sitting on the hotel, holding it as an investment. It was operating and they were taking depreciation deductions. That fact throws it out of the definition of a capital asset which is in Code Section 1221. Code Section 1221 defines capital asset negatively. It is pretty much everything except certain things including:
Lamar Smith Joins The Ranks Of Hovindologists
Things have been quiet here on Your Tax Matters Partner. The raison d'etre of this blog is tax matters that I don't find forbes worthy. The recent tax bill has kept...