Taxable Incove Vs. Financial Accounting Income

Daniel N. Shaviro (NYU) has published The Optimal Relationship between Taxable Income and Financial Accounting Income: Analysis and a Proposal, 97 Geo. L.J. 423 (2009). Here is the abstract: The persistence of the book-tax gap, or excess of companies’ reported

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Posted in Income

Temporarily suspend income recognition from the purchase of below par business debt

The economy is contracting rapidly. At the heart of this contraction are the twin problems of plummeting demand and a “liquidity crisis” in which banks, having suffered immense losses and waiting for the next shoes to drop, are strapped for

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Posted in Accounting Method, Business Income

Identity Theft + the IRS what you need to know

1. If you receive a letter or notice from the IRS which leads you to believe someone may have fraudulently used your Social Security Number, respond immediately to the name and address or phone number printed on the IRS notice.

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Posted in Theft Loss

Tax return transcripts are free – actual copies of the return cost $$

There are two easy and convenient options for obtaining free copies of your federal tax return information - tax return transcripts and tax account transcripts - by phone or by mail. A tax return transcript shows most line items from

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Posted in Tax Guidance & Preparation, Tax Problems & Requests

Financially Distressed Taxpayer Help

With many people facing additional financial difficulties, the IRS is taking several additional steps to help people who owe back taxes. They claim to ensure that they balance their responsibility to enforce the law with the economic real ities facing

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Posted in Tax Guidance & Preparation, Tax Problems & Requests

Reporting Hobby Income and Expenses

Since a hobby is something done for personal pleasure it is not a trade or business, should income be generated from a hobby the gross income is reported on Line 21, Form 1040. The cost of the materials used to

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Posted in Hobby, Income

Form 4361, Application for Exemption From Self-Employment Tax for Use by Minister, Members of Religious Orders and Christian Science Practitioners.

Filing IRS Form 4361 will not prevent collecting Social Security on the amounts earned prior to becoming an ordained minister or any additional non-ministerial self-employment income or wages. Form 4361 applies only to services as an ordained minister. The form

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Posted in Church Pastor Religion

Payment to religious schools ruled non deductible

The Ninth Circuit affirmed the Tax Court (125 T.C. 281 (2005)) in holding that a couple's tuition and fee payments to their children's Jewish day schools do not qualify for the charitable deduction because they received a substantial benefit from

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Posted in Charitable Contribution

SUV’s and Depreciation

In Revenue Procedure 2003-75, the IRS announced a separate set of luxury car depreciation limitations for trucks or vans that do not have a gross vehicle weight in excess of 6,000 pounds. In that revenue procedure, the IRS stated that

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Posted in Business Expense, Depreciation
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