Student Loan Applications and the IRS

Preparing for college often means applying for student loans to pay for it as well. Every year students struggle and stress while trying to complete the Free Application for Federal Student Aid (FAFSA). Completing your student financial aid application is

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Posted in Children, Student Loan

What to do IF you do not agree with an IRS Examiner

If you do not agree with the proposed changes of your assigned examiner, you tell this to the examiner by saying or writing  'I do not agree with your changes.'.  The first thing the examiner must do is explain to

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Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement

IRS Examination Selection Criteria

Your tax return may be examined for any one of a number of reasons, and the exam can take place in any one of a variety of ways, in a variety of locations, and quite frankly without you even knowing

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Posted in IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement

IRS Helps Small Employers Claim New Health Care Tax Credit; Forms and Additional Guidance Now Available on Small Business Health Care Tax Credit

The Internal Revenue Service today released final guidance for small employers eligible to claim the new small business health care tax credit for the 2010 tax year. Today’s release includes a one-page form and instructions small employers will use to

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Posted in Health Care Tax Credit, Small Business

How to Prepare a Request for an Appeal of an IRS Examination – IRS Form 12203

If you decide you want to present your dispute to IRS Appeals, you will need to prepare a request for Appeals and mail it to the office that sent you the decision letter. There are essentially 2 types of requests

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Posted in Amended Tax Return, Appeals & Audit Resolution, Colorado Department of Revenue, IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement, Self Employ, Small Business, Social Security Tax, Statutory Notice of Deficiency, Sub-chapter S, Tax Guidance & Preparation, Tax Problems & Requests, Tax Relief

What is a short term rental requiring material participation?

A 'Short Term Rental' usually involves Condos, B&B’s, Hotels, Etc.  These 'short term rentals' fall outside of the definition for tax purposes of rental real estate.  As such these investments are treated as a business and the owner must materially

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Posted in Rental Real Estate

Who is not considered a ‘real estate professional’ for tax purposes?

Attorney specializing in real estate CPA’s specializing in real estate Banker or mortgagor Investment advisor Financial planner or consultant Interior decorator Taxpayer who works on a building but is not in the real property business Taxpayer who is less than

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Posted in Rental Real Estate

Difference between a real estate professional, a dealer in real property and an investor in real estate for tax purposes

A real estate professional must spend more than one half his/her time on ‘real property business.’  Unless the real estate professional ‘materially participates’ in rental activity losses are passive. A real estate dealer of real property sells and buys properties

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Posted in Rental Real Estate

Passive Activities and the Real Estate Professional – IRC 469(c)(7) and Reg. 1.469-9

A qualifying real estate professional may deduct rental real estate losses for each rental in which he/she materially participates provided 3 tests are passed: More than one half of the taxpayer’s personal services must be in real property business.  ‘Real

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Posted in Passive Activity, Rental Real Estate

Common Mistakes with Passive Activities – IRC 469 – IRS Form 8582

Not grouping related activities as one activity Treating equipment leasing as non-passive by placing the revenue from such on Schedule ‘C’ or Schedule K-1 line 3.  Rentals are passive even if the taxpayer materially participated Deduct rental real estate losses

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Posted in Passive Activity
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