Abusive Home-Based Business Tax Schemes – Misuse of the Law

The IRS has uncovered a number of schemes that claim to allow deductions for personal living expenses. Taxpayers should consider these points before investing in a possible abusive scheme: Any investment scheme or promotion that claims to allow a federal

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Posted in Abusive Tax Shelter, Back Taxes Owed, Home Office, Self Employ, Small Business

1099-A-Foreclose of house

When a house is foreclosed upon by the bank, the owners typically receive Form 1099-A from the lender showing several pieces of relevant information. The information on Form 1099-A will likely be needed to report the foreclosure properly on your

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Posted in Foreclosure

Tax Exemption Questioned for Christian Congressional Man Cave

New York Times editorial, Render Unto C Street: It is not unusual for members of Congress to arrange group rentals in Washington to share housing costs and, for some, underline their continuing “outsider” status. What is highly unusual, and unjustifiable,

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Posted in Abusive Tax Shelter, Charitable Contribution, Tax Fraud, Tax Guidance & Preparation, Tax Problems & Requests

Oddball Tax Deductions

ACK: Kiplinger 1. A sex-change operation. A man who felt he was a woman trapped in a male body was diagnosed with gender-identity disorder. This transgender taxpayer wanted to deduct almost $22,000 in out-of-pocket medical costs for multiple surgeries, including

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Posted in Deductible Expense

Sperm v. Egg Donor Medical Expense Deduction

The First Circuit Court has summarily affirmed the decision of the Tax Court (Magdalin v. Commissioner, T.C. Memo. 2008-293 (Dec. 23, 2008)) denying a sperm donor's claimed medical expense deduction, even though the Internal Revenue Service allows the expenses of

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Posted in Medical Expenses, Tax Court

Employee is alien with no green card or valid SS#

My client's employee is an alien who does not have a green card or valid social security number. As instructed the employer has requested the employee provide a social security number to use on the employee's W-2, but the employee

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Posted in ITIN

Colorado Sales/Use tax exemptions eliminated/suspended

Recent legislative changes have eliminated the state sales and use tax exemption for certain items. These changes were developed by state lawmakers to help balance Colorado’s budget. The legislation has no effect on items that are either currently taxable or

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Posted in Colorado Department of Revenue, Sales Tax, Use Tax

Your Child’s Investment Income – tax implications

The following facts will help parents determine whether their child’s investment income will be taxed at the parents’ rate or the child’s rate. Investment Income Children with investment income may have part or all of this income taxed at their

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Posted in Child Tax, Children, Dependent, Investment Income

First-Time Homebuyer Credit Documentation Requirements

The IRS recognizes that the settlement documents can vary from location to location, so here are five tips to clarify the documentation requirements. Settlement Statement: Purchasers of conventional homes must attach a copy of Form HUD-1 or other properly executed

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Posted in Tax Credit
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