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

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Posted in Health Care Tax Credit, Health Insurance, Medical Expenses

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

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Posted in IRS Levy

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

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Posted in Income

Net Operating Loss Carry Over and Carry Back – IRS Publication 536 – IRC 172 + 6511

Generally speaking a net operating loss (NOL) for any tax year may be carried back two years and forward 20 years under Internal Revenue Code Sec. 172(b)(1)(A). A three-year carry back period applies to NOLs arising from property losses of individuals due to

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Posted in Net Operating Loss, NOL

Cancellation of Debt on Short Sale of Real Estate

When a rental home secured by a recourse loan is sold short you incur a loss on the disposition of the rental properties requiring the report of a sale as well as any income from the cancellation of debt. The cancellation of debt income is excluded from

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Posted in Cancelled Debt, Rental Real Estate

IRS Accuracy Related Penalties

The IRS may impose a twenty percent accuracy-related penalty if it determines that there is a substantial understatement of income tax according to IRC 6662. You may avoid all or part of the penalty by showing that: (1) you acted in good

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Posted in IRS Penalties

How to Report a Foreclosure to the IRS

A foreclosure on rental property technically involves the sale of the property back to the lender. Form 1099-A Acquisition or Abandonment of Secured Property reports that the lender has repossessed or foreclosed on the property. Box 2 is the amount of the outstanding mortgage debt, and

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Posted in Asset Classification, Capital Gain, Capital Loss, Foreclosure, Passive Activity, Rental Real Estate, Taxable Income

IRS Penalty Abatement – Reasonable Cause

Quite often I get asked to seek penalty abatement relief for an IRS delinquency or set of delinquencies as part of helping taxpayers chart a path towards compliance. Today while perusing the IRS web site I stumbled across some text

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Posted in IRS Penalties, IRS Penalty and Interest Abatement

IRS Form 8952 – Voluntary Worker Classification Settlement Program

I received an interesting call today from a small business employer who was reported to the IRS by a disgruntled past worker who claimed that he was paid as an independent contractor (and received IRS Form 1099) when in actuality

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Posted in Employee Business Expense, Employment Tax, Independent Contractor, Trust Fund Recovery Penalty, Unemployment, Worker Classification
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