Who is a Professional Gambler?

In the Tax Court case of Trieu M. Le, et ux. v. Commissioner TC Summary Opinion 2010-94 the IRS took the position that the taxpayer was a casual gambler and should have deducted his losses up to his winnings on

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Posted in Gamble

IRS Form 8332 Outweighs Divorce Decree Regarding Dependency Exemption

Section 152(e) of the tax code specifies how to determine the dependent status of children of divorced parents. This code section states that the noncustodial parent can claim the dependency exemption for a child when the custodial parent signs a written declaration that the

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Posted in Child Tax, Children, Dependent

Abusive Tax Shelters

Abusive tax shelters of every nature are what I call scum bag lawyer schemes.  It is difficult to specifically define abusive tax shelters because new ones are constantly emerging.  Essentially they are arrangements usually designed by 'promoters' to circumvent tax

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IRS Criminal Investigation Enforcement Trends

Hey everyone, check out what the Treasury Inspector General for Tax Administration is writing... "Criminal Investigation’s (CI) primary resource commitment is to develop and investigate legal source tax cases. The prosecution of these cases is key to supporting the Internal

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Posted in IRS Collections, IRS Enforcement, IRS Examination, Tax Fraud

Mileage Deduction as Unreimbursed Employee Business Expense

Okay I got a new case for appeal consideration and am blasting out my thoughts as to why this one is not receiving further consideration.  In short it is not winnable. You need to be very diligent in your research

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Posted in Business Expense, Employee Business Expense

IRS Guidance on Qualified Long Term Care Insurance Contracts

IRS Notice 2011-68 provides interim guidance on the federal income tax treatment of annuity and life insurance contracts with a qualified long-term care insurance (QLTC) feature. The guidelines address the application of certain changes to the federal income tax rules governing annuity

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Posted in Dependent, Health Insurance, Medical Expenses, Tax Guidance & Preparation

Ponzi V. Pyramid Scheme

A friend of mine asked me to blog today about my experiences from a tax perspective with Ponzi schemes and pyramid schemes. Both are for the most part perpetrated by clandestinely malcontent people that have inadvertently grown trustworthy, a "friend"

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Posted in Tax Abuse, Tax Fraud

Personal Expenses V. Deductible Medical Expenses

Generally you can deduct expenses paid for medical care for yourself, your spouse and your dependents to the extent the total expenses for the year exceed 7.5 percent of your adjusted gross income and you itemize your deductions (Schedule A). IRS Pub. 502,

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Posted in Medical Expenses

Personal Guarantee of Corporate Debt Does NOT Add to Basis (Investment)

Taxpayers who own shares in an S corporation are allowed pass-through losses to the extent of their basis (also commonly referred to as investment) under §1366(d) in their entity. Shareholders can obtain basis in a variety of ways such as direct investment,

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Posted in Cost Basis, Disallowed Expenses, Entity Classification, NOL, Self Employ, Small Business, Sub-chapter S
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