The Significance of Stepped Up Basis in Estate Planning IRC 1014

According to Internal Revenue Code Section 1014 the basis of property acquired from a decedent is the fair market value of the property at the date of the decedent’s death. This is often referred to as stepped up basis and it is profoundly significant for US taxpayers dealing with the myriad of issues surrounding estate planning or…

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Gluten-Free Federal Tax Deduction

To be eligible to deduct the excess costs of a gluten-free diet under Internal Revenue Code Section 213, you must have a documented reason to require the observance of a gluten-free diet, along with a physician’s prescription to follow a gluten-free diet. This should provide sufficient documentation of eligibility. The excess cost of gluten-free food…

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Is THAT Gift Taxable – IRS Form 709

The IRS instructions to Form 709 Gift Tax Return spell out the general rules for allocating the unified credit to prior gifts. For 2017, the annual gift tax exclusion is $14,000.  That means you can give up to $14,000 to as many different people as you want as a gift without being subject to gift tax rules. The…

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Postings on www.IRS.gov are NOT Necessarily Legal Authority

Who can taxpayers trust anymore?  Add to the list of items our federal government employee’s posts on www.IRS.gov including answers to frequently asked questions. IRS’s Small Business/Self Employed Division (SB/SE) has issued a memorandum to its Field Examination Area Directors that provides that frequently asked questions (FAQs) and other items posted on www.IRS.gov, that have not…

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What is a Real Estate Professional For US Federal Income Tax Purposes

Everyday people misinterpret the tax code.  It does not matter if you are a bookkeeper, accountant, unlicensed tax practitioner, Enrolled Agent, CPA, tax attorney, or even a Tax Court Judge, the tax code is complicated and confusing and many of us struggle understanding it, much less applying it in practicality. Those of us that are…

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