Capital v. Operating Lease – Tax Reporting Implications

We often encounter taxpayers who do not quite fully understand how to report for income tax purposes the lease agreements they have entered into for business use assets, particularly automobiles.  Leased property includes real estate, machinery, and other items that

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Posted in Capital Lease, Lease

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

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Posted in Basis, Cost Basis, Death, Estate Tax, Generation Skipping Transfer Tax, Gift Tax, Tax planning, Trusts

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

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Posted in Medical Expenses

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

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Posted in Gift Tax

Postings on are NOT Necessarily Legal Authority

Who can taxpayers trust anymore?  Add to the list of items our federal government employee's posts on 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

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Posted in IRS Audit, IRS Enforcement, IRS Examination

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

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Posted in Material Participation, Passive Activity, Real Estate Professional

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

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Posted in Extension

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

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Posted in Depreciation

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

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Posted in Extension
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