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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Filing Season is Here – Be Safe – File an Extension Request Today

Tax day is upon us – remember to at least get you application for automatic extension request electronically filed or post marked today using IRS Form 4868 Keep in mind this extension request is for additional TIME TO FILE the income tax forms.  It is NOT a request for an extension of TIME TO PAY income taxes due. Tax…

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2017 Vehicle Depreciation Limitations IRS Rev Proc 2017-29

According to IRS Rev Proc 2017-29 (assuming IRC 168(k) applies) 1st year magic numbers are: $11,160 for passenger autos $11,560 for Trucks and Vans The rev proc also details lease inclusion amounts. Be sure to understand whether additional first year depreciation deductions apply under Internal Revenue Code Section 168(k) We all love our bonus depreciation! The principal…

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Does Your Business Need and Income Tax Filing Extension? Business Partnership and S Corp Income Tax Forms Due Next Week!

The Business and Partnership Tax deadline is coming up fast, Wednesday March 15th 2017 Don’t sweat it. File IRS Form 7004 and apply for Automatic Extension of Time to File Certain Business Income Tax forms. If you happen to be compelled feel welcome to check out the instructions for IRS Form 7004. If you need help…

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How much can you deduct for the gently used goods donated to charity?

Without a doubt one of the best ways for us middle-class folks to reduce our income tax burden is to donate charitably with intent. Most of my clients find themselves pleasantly surprised at the tax benefits received when they go through the exercise of donating gently used household items to charity. The IRS allows you…

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