IRS Revenue Agent Site Inspection

Yikes!!! The IRS wants to pay you a visit.  You need to know that Reg. §301.7605-1(d)(3)(iii) states: “Regardless of where an examination takes place, the IRS may visit the taxpayer’s place of business or residence to establish facts that can only be established

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Deductibility of Charitable Contributions – IRS Form 8283

Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record, payroll deduction records or a written communication from the organization containing the name of the organization, the date of

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What Qualifies As Deductible Alimony Payments

The following items are deductible as alimony payments if part of a divorce decree, even if the payments are made directly to a bank or insurance company: Car Payments Health Insurance Premiums One half the interest on mortgage payments made

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Marriage as Defined by the IRS

Thinking about one's marriage in IRS terms quickly can turn anybody into a stand up comedian.  In all seriousness though the times appear to be ripe for change in how the tax law defines marriage.  I write this because the

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Posted in Alimony, Marriage

Casualty and Theft Loss – IRS Form 4684

Your vehicle was hit by hail and the insurance company agreed to compensate you $4,600 AND allow you to keep the vehicle AND not issue you a salvage title.  In most situations this is non reportable.  However not always.  This

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If Your Child’s Investment Income is Greater Than $1,900 in 2010 It May Be Taxable at Your Tax Rate

Children with investment income may have part or all of this income taxed at their parents’ tax rate rather than at the child’s rate. Investment income includes interest, dividends, capital gains and other unearned income. Your child’s tax must be figured

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Residential Rental Income + Expenses – IRS Publication 527

Rental income is any payment you receive for the use of or occupation of property. Expenses of renting property can be deducted from your gross rental income. You generally deduct your rental expenses in the year you pay them. Publication 527,

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Punitive Vs. Compensatory Determines if Payment is a Deductible Expense

Stephens V. Commissioner, 93 TC 108 showed that any payment labeled 'restitution' or 'punitive' is non-deductible as an expense.  If the payments are labeled 'compensatory' then in order for the payment to be a deductible expense the question of whether

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Home Office Deduction Pitfall – IRS Form 8829

The home office deduction is something that you can choose not to take and sometimes that is the best choice.  If you are legitimately using dedicated space in your house for your on-going business with a profit motive or you

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Inherited IRA’s Are NOT a Protected Asset Class in FEDERAL Bankruptcy Proceedings

Traditional retirement accounts are generally speaking considered a protected asset should you be required to endure FEDERAL bankruptcy protection. However an Inherited IRA is not generally considered a protected asset in 2 distinguishable regards: The distributions of funds from an

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