Partnership Vs. Qualified Joint Venture

Under IRC 761 the term partnership essentially includes a syndicate, group, pool, joint venture, or other unincorporated organization through or by means of which any business, financial operation, or venture is carried on, and which is not, a corporation or a trust or estate. It goes on to essentially state that an unincorporated organization may exclude itself from this definition if…

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Co-ownership of Rental Real Estate Does Not Require Partnership Formation

Generally co-ownership in rental property does not require the formation of a partnership when the following conditions are met. 1. Each co-owner must hold title to the property as a tenant in common (TIC) under local law. This usually doesn’t apply community property. Although the title to the property can’t be held by an entity, an individual tenant-in-common…

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Tax Tips for Selling Your Home

Generally you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale. If you have a gain from the sale of your main home, you may be able to exclude…

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Claim IRS Tax Credit for Hiring Veterans

The VOW to Hire Heroes Act of 2011, provides an expanded Work Opportunity Tax Credit (WOTC) to businesses that hire eligible unemployed veterans and for the first time also makes the credit available to certain tax-exempt organizations. IRS Notice 2012-13, posted today on IRS.gov, and the instructions  for IRS Form 8850 provide details in support of the following… According…

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IRS Failure to File Penalty Abatement for Partnerships

IF your partnership failed to timely file its IRS Form 1065 and you get penalized by the IRS you seek relief from or abatement of this penalty under IRS Revenue Procedure 84-35 if your partnership meets the following criteria 1. A domestic partnership composed of 10 or fewer partners and coming within the exceptions outlined…

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Lessons From Mitt Romney’s Tax Return

Check out Mitt Romney’s 2010 tax return and learn how he does it. The most important lesson I learned in perusing his return (besides the significance of sheltering your $$ outside of the USA) is the immediate impact of targeted charitable contributions. In my professional opinion the absolute best way to reduce your tax liability is to…

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Qualified Medical Expense Tax Deductions for Long Term Care Services

Medical expenses include amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease under IRC 213, as well as amounts paid for qualified long-term care services under IRC 7702B. You may deduct certain medical expenses that are paid during the year and that are not compensated for by insurance to the extent that the expenses exceed 7.5%…

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IRS Levy Release Overview

The IRS it seems is issuing liens and levies with substantial gusto lately. I’ve grown reasonably skilled at getting these burdens timely released and felt compelled this evening to share some of my experiences in this blog post. A levy on a bank account attaches only to funds in your account at the time the bank processes…

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Income Tax Based Financial Statements

Enrolled Agents generally tend to avoid preparing financial statements for their business clients due to the regulation of the CPA profession where preparation of these statements has been associated with services enrolled agents were not permitted to perform. However I believe it is not a violation of US Treasury Circular 230 for Enrolled Agents to prepare income tax-based financial…

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