Tax Treatment of Land Easement Transactions Rental Income vs. Sales Proceeds

According to the National Association of Tax Preparers the key to reporting transactions that involve land easements is to first determine whether the payment represents rental income or sale proceeds.  If the taxpayer was leasing a land easement for a specific period of time to (for example sake) a cellular provider, the taxpayer should be…

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Time for Claiming a Tax Refund – IRS Publication 556

According to IRS Publication 556 taxpayers generally must file a claim for a credit or refund within 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later. If you do not file a claim within this period, you may no longer be entitled…

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Written IRS Appeal Protest

You can appeal an IRS tax decision to a local Appeals Office, which is separate from and independent of the IRS office taking the action you disagree with. The Appeals Office is the only level of appeal within the IRS. Conferences with Appeals Office personnel are held in an informal manner by correspondence, by telephone,…

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What to Classify Your New Entity for Tax Purposes – IRS form 8832 v IRS Form 2553

Understanding how to file LLC taxes, S Corporation taxes and taxes for other business entities can be one of the biggest headaches of starting your own business. Filing taxes for a business entity like an LLC can be especially confusing because of all the various options the IRS allows for Limited Liability Companies.  Keep in…

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No Medical Expense Deduction Allowed for Precautions to Treat Future Disease

Under §213, a taxpayer is allowed to deduct the cost of preventing, treating, curing, mitigating, and diagnosing a disease that is existing or imminently probable for themselves or a family member. Doctors now can store cord blood of an infant that contains stem cells that may be used to treat or cure a disease. However, the cost to collect or store umbilical cord blood…

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Truck Owners IRS Form 2290

e-Filing Form 2290, Heavy Highway Vehicle Use Tax Differences Between The Paper and Electronic Processes Q. Is there a cost associated with filing Form 2290, electronically? A. Yes, there is a cost associated with filing Form 2290, electronically. Taxpayers will incur the cost of IRS approved transmitter/software provider’s required service fees.  Note: The IRS does not…

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Deducting IRA Losses – IRS Publication 590

According to IRS Publication 590, chapter 1 section “Recognizing Losses on Traditional IRA Investments” you can indeed deduct for tax purposes a loss on IRA plans if you cash out all funs out of all IRAs of the same type be they traditional IRAs Roth IRAs. For traditional IRA’s any loss would be reported on IRS…

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Colorado Use Tax Will Surprise and Sting – Be Aware

Online Consumer Use Tax for Colorado taxpayers now available Consumer use tax must be paid by Colorado residents and businesses on purchases that did notinclude Colorado sales tax, such as those purchases made over the Internet, by mail order, or by telephone. Online Consumer Use Tax filing is available at www.Colorado.gov/RevenueOnline Colorado’s consumer use tax rate…

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IRS to Review Innocent Spouse ‘Timeline’ Rules

In a letter to lawmakers dated April 29, IRS Commissioner Doug Shulman promised to review the 2 year requirement for submitting IRS Form 8857 as part of its ‘Fresh Start’ program. Once a joint tax return is filed, both spouses together are liable for 100% of the taxes. If the naughty spouse doesn’t have the $$…

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Rental Real Estate Energy Efficient Upgrades Eligible for Tax Credit on IRS Form 3800

If you own an office building that rents to various tenants and would like to install solar panels on the roof to generate electricity, and a geothermal heating and cooling system you may be eligible for a tax credit for these items. IRC §48 allows you to claim a tax credit equal to 30% of the…

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