Characterizing Liquidating Distributions – Wallis, et ux. v. Commissioner TC Memo 2009-243

Liquidating payments made by a partnership to a retiring partner are governed by §736.  In general, if the payments are in exchange for partnership property, the amount received in excess of the exiting partner’s outside basis in his partnership interest is taxed as capital gain.  On the

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Posted in Distributions

Bartering

Bartering is the trading of one product or service for another. Usually there is no exchange of cash. However, the fair market value of the goods and services exchanged must be reported as income by both parties. A barter exchange

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Be Sure to Allocate Costs If You Share Ownership: US Tax Court Summary Opinion 2010-15: Sword v. Commissioner

Unless of course you are married and filing a joint tax return, whereby the IRS essentially classifies both individuals together as a single tax payer, you should take care to allocate costs equitably for items of shared ownership. In US

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Posted in Cost Segregation, Rental Real Estate

Net Operating Loss (NOL) Carryback Allowed to Reduce Outstanding Tax Liability

Generally, a claim for credit or refund of an overpayment must be filed by the taxpayer within three years from the time the return was fi led or two years from the time the tax was paid, whichever is later [§6511(a)].  There

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Posted in Net Operating Loss, NOL

Alternative Minimum Tax (AMT) Triggers and Tax Planning

The Alternative Minimum Tax, or AMT, is a parallel tax system to the standard tax system.  Every taxpayer is responsible for paying the higher of the regular tax or the alternative minimum tax. The difference between the two tax calculations

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Posted in Alternative Minimum Tax (AMT)

Application of Asset Classification Rules When Determining Cost Segregation Depreciation

Okay this is pretty huge in regards to some of the IRS Examination Appeals work I have been doing lately.  The bottom line is that you need to follow the asset classification rules if you are going to engage in

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Posted in Cost Segregation, Depreciation

W-2 Missing or Not Received – What to do? … If needed file IRS form 4852, Substitute Wage and Tax Statement

You should have received a Form W-2, Wage and Tax Statement, from each of your employers by January 31, 2011. If you haven’t received your W-2 yet you should contact your employer(s) or previous employer(s) to inquire if and when

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Posted in Paying Taxes, Payroll Tax Problems

Breast Pumps and Supplies to Assist Lactation Are Now, Finally, Considered Tax Deductible Medical Expenses by the IRS – Announcement 2011-14

The Internal Revenue Service has concluded that breast pumps and supplies that assist lactation are medical care under § 213(d) of the Internal Revenue Code because, like obstetric care, they are for the purpose of affecting a structure or function of the body

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Estate Tax Planning Tips for 2011

The 2010 Tax Act extends to December 31, 2012, the income, estate, gift and generation-skipping tax provisions enacted during the administration of President George W. Bush ("EGTRRA"). For the two-year period beginning January 1, 2011, it reinstates the unified federal

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How to Determine if Your Social Security Benefits are Taxable

If you received Social Security benefits or payments in 2010, some of that money may be taxable. You should receive a Form SSA1099 which will show the total amount of your benefits. How much of your Social Security benefits are

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