S Corp Late Filing Penalty Excused IRC 6699 Ensyc Technologies v. Commissioner

Considering the scope of the reasonable cause language to the Code Sec. 6699 penalty for late filing of an S corporation return, the Tax Court determined that the failure to timely file a 2008 2008 1120-S tax return was due to reasonable cause not subject to penalty in Ensyc Technologies v. Comm’r, T.C. Summary 2012-55 (6/14/12). The following…

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Moving Expenses and Military Duty – IRS Publication 3, Armed Forces Tax Guide Vs. IRS Publication 521, Moving Expenses

According to IRS Publication 3, Armed Forces Tax Guide if you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you do not have to meet the distance and time tests, addressed in IRS Publication 521, Moving Expenses. You deduct moving expenses that were not…

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YIKES! IRS Issues Proposed Regulations on New 3.8% Net Investment Income Tax

A new Net Investment Income Tax goes into effect starting in 2013. The 3.8 percent Net Investment Income Tax applies to individuals, estates and trusts that have certain investment income above certain threshold amounts. The IRS and the Treasury Department have issued proposed regulations on this new Net Investment Income Tax. I’m going to pour over…

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Gift Tax on Transferred Real Estate

The person or entity transferring a property has a capital gain to the extent that the amount realized exceeds the adjusted basis of the property. However according to Reg § 1.1001-1(e) no loss is allowed on a transfer that is part sale and part gift, if the amount received is less than the adjusted basis. For…

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IRS Form 1040 Line 21 and Subsequent CP2000 Notices

IRS CP2000 notices are annoying for a wide variety of reasons but mostly because the IRS assumes that most all items reported on line 21 of IRS From 1040 are subject to self-employment (SE) tax. Much of what goes on line 21 (trustee fees for executors, prizes and awards, gambling winnings, cancellation of debt income,…

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Are You A Trader or an Investor? Van Der Lee v. Commissioner TC Memo 2011-234

While many individual taxpayers claim to be traders in securities as compared to investors, in Henricus C. van der Lee, et ux. v. Commissioner TC Memo 2011-234 we learn in my humble opinion that the facts and circumstances of each and every specific taxpayer’s operation must be reviewed to make a proper determination in these regards. The bottom line…

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Tax Treatment of a Reverse Mortgage

A reverse mortgage is generally a loan where a lender pays a lump sum, a monthly advance, a line of credit, or a combination of all three to you while you continue to live in your home and retain title to it. Plans vary but for the most part a reverse mortgage becomes due with interest when…

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