IRS and Medical Marijuana Dispensaries – Olive v. Commissioner

Dispensary owners now finally have some precedent to follow in arriving at federal taxable income. In Olive v. Comm’r, 139 T.C. No. 2 (8/2/12), Mr. Martin Olive the owner of an operation called the Vapor Room was required to prove among other things that he was entitled to deduct the Vapor Room’s claimed amounts of cost…

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IRS Publication 587: Business Use of Home

I am not a big fan of this deduction for a wide variety of reasons but mostly because there can be a substantial administrative burden associated with recapturing depreciation expense taken in previous tax years upon the sale of one’s home in the current tax year. The secret to this deduction though in my opinion…

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What $$ IS Taxable: IRS Publication 525

I’ve been engaged in a running dialog with extraordinary nuances as to whether a loosely organized group of people are or are not fully recognizing taxable revenue from engagement in barter transactions with each other. The nuances inside this topic ranged from record keeping (as in if neither party kept written record did a taxable…

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IRS and Federally Declared Disaster Areas

People living in a federally declared disaster area are entitled to a wide variety of tax benefits. Around the Nation provides IRS news specific to local areas, primarily disaster relief or tax provisions that affect certain states. 2012 federally declared disaster areas issued by the department of Homeland Security can be useful if you are uncertain or…

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Non-business Energy Vs. Residential Energy Efficient Property Tax Credits – IRS Form 5695

The most important thing to remember about the non-business energy property credit and the residential energy efficient property credit is that not all energy-efficient improvements qualify so be sure you have the manufacturer’s tax credit certification statement IN YOUR TAX FILE JUST IN CASE YOU GET AUDITED. Also be sure to understand if the product’s…

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IRS Stakeholder Liaison Meeting Summary

The following are the notes from the most recent IRS Stakeholder Liaison Meeting held in Denver Colorado as prepared by IRS Senior Stakeholder Liaison Deborah Rodgers Michael Shuler,  Local Taxpayer Advocate Nina Olson, the National Taxpayer Advocate’s (NTA) objectives report was released in June, revealed some issues that will be coming out in the annual…

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IRS Forms 8941 + 3800 Calculating + Claiming Small Business Health Care Tax Credit

For tax years 2010 to 2013, the maximum credit for eligible small business employers under the Small Business Health Care Tax Credit is 35 percent of premiums paid and for eligible tax-exempt employers the maximum credit is 25 percent of premiums paid.  Beginning in 2014, the maximum credit will go up to 50 percent of…

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IRS Tax Preparation Scams + The American Opportunity Tax Credit

I opened another file today involving a taxpayer that got scammed by the person who prepared his 2011 tax return. In this scheme the promoter claimed the taxpayer could get a tax refund based on the American Opportunity Tax Credit even though she was not enrolled in or paying for college. Unbelievable! I almost feel…

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Ex Parte Communication and IRS Appeals – Rev. Proc. 2012-18

Ex parte communication is oral or written communication that takes place between any IRS Appeals employees such as Appeals Officers, Settlement Officers, Appeals Team Case Leaders, Appeals Tax Computation Specialists and employees of other IRS functions without the taxpayer’s representative being given an opportunity to participate in the communication. IRS Rev. Proc. 2012-18 updates the rules relating to this type…

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IRS Publication 4681 Re: Mortgage Debt Forgiveness

This post is a brief review of IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonment (For Individuals) as it relates to mortgage debt forgiveness. If your debt is reduced or eliminated you normally will receive a year-end statement, IRS Form 1099-C, Cancellation of Debt from your lender. By law, this form must show the amount of debt forgiven…

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