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 the 'compensatory' expense was ordinary...
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 are required to keep an...
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 inherited IRA to a surviving beneficiary...
When signing up for a health insurance plan registered under your business, the business may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for you, your spouse, and your dependents if you are one of the following: A...
Foreign Earned Income - IRS Form 2555 IRS Form 2555, Foreign Earned Income Exclusion says basically that United States Citizens and resident aliens who live and work abroad may be able to exclude all or part of their foreign salary or wages from their income when filing...
One of the areas that the IRS more frequently becomes involved in deals with expenses that are deducted by a closely-held corporation. Many expenses are personal to the stockholder/employee. When the IRS reviews such expenses and disallows the expenses for business purposes, the...
So in that I'm a self professed ski bum I often get asked on the chair lift by total strangers how someone can legitimately deduct the cost of s ski trip on their taxes. Today for some strange reason I felt compelled to research the...
It is blowing my mind how many people this year have become unwittingly liable for the Alternative Minimum Tax. Good people who thought they had been withholding enough taxes now find themselves owing big. The people hit the hardest seem to have a few common...
The key to slowing down or even preventing the IRS from taking enforcement action is to make certain the IRS representative you are working with places the installment agreement proposal in “pending” status. In order for an installment agreement proposal to be placed in pending status,...
This is a GREAT question that I've been getting lately. The basic answer is - as ALWAYS - it depends. Internal Revenue Code (IRC) 448(d)(2) defines a qualified personal service corporation as an entity where substantially all of the activities involve the performance of services...