Colorado Sales Tax on Vacation Rentals

If you rent a house or condominium to someone for less than 30 days in Colorado it is likely sales tax is owed on that rental. There may also be other taxes owed as well including line items for a county lodging tax etc. If you use a management company to rent the property be…

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2012 Estate Tax Exemption Increase

IRS Rev. Proc. 2011-52 states that the federal estate tax exemption will increase from $5,000,000 to $5,120,000 for the estates of decedents who die in 2012. Subsequently the lifetime gift tax and generation skipping transfer tax exemptions will increase from $5,000,000 to $5,120,000 in 2012 as well.

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Solo 401(k)

I blog today about 401(K)’s from a tax perspective solely keeping in mind that my license is as an Enrolled Agent with the US Treasury.  With that as a basis the benefits available to a self-employed individual in a solo 401(k) plan have increased. The self-employed individual can contribute to the solo 401(k) plan two…

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IRS Transfer Pricing Compliance Programs Reorganization

The IRS Advance Pricing Agreement (APA) Program, concerned exclusively with reaching pre-filing agreements with taxpayers on transfer pricing, will shift from the office of IRS Chief Counsel to an office under the Transfer Pricing Director in the Large Business & International division’s international operation. In addition, the IRS Mutual Agreement Program (MAP), concerned primarily with…

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Tax Deductible Job Search Expenses

If you invest money seeking employment in your current vocation by taking such action as updating your resume and/or attending career fairs you may be able to deduct some of the expenses as miscellaneous deductions on the Schedule A of IRS Form 1040 based on the following general criteria. To qualify for a deduction, the…

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What taxes can be discharged in bankruptcy

Bankruptcy tax law is complicated and involves a firm grasp of time lines. Getting it right is complicated and requires reflective consideration. I learned this first hand back in 2004. If you get it wrong you loose the privilege of a more thorough ‘fresh start’ as it were. Generally speaking for a tax debt to be…

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Colorado Amended Tax Return Tips – CO 104X

When filing a Colorado amended return for individual income tax, these tips will help avoid processing delays. DO NOT include a copy of the 104 (original) return with the 104X.  Include all schedules and supporting documentation. Even when there is no change to the 104CR credit schedule or the 104PN part-year/nonresident form, those forms must be…

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Tax Tips for Military Personnel – IRS Publication 3

Moving Expenses If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you can deduct the reasonable unreimbursed expenses of moving you and members of your household. Combat Pay If you serve in a combat zone as an enlisted person or as a…

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IRS Restrictions on Contacting Taxpayers

The Treasury Inspector General for Tax Administration (TIGTA) recently issued Report Number: 2011-30-090. In this report it clearly states that Internal Revenue Service (IRS) employees are required to stop an interview if the taxpayer requests to consult with a representative and may not bypass a representative without supervisory approval. Evidently this is not happening as diligently…

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IRS Treatment of Marijuana Dispensary Expenses

If you are in the business of dispensing marijuana according to the United States Office of Homeland Security you are selling an illegal drug not a medicine like many individual states believe. Nevertheless Internal Revenue Code IRC 280(E) states that the expenses associated with selling illegal drugs are not deductible from revenue when calculating federal income for…

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