by | Nov 7, 2012 | Income Taxes, Tax Tip of The Week
When you receive a W-2G for gambling winnings, you are allowed to deduct your losses up to the amount of your winnings. But you must be able to prove your losses with some form of documentation. In a recent Tax Court case (Rios, TC. 2012-1128) the taxpayer was...
by | Oct 24, 2012 | Tax Tip of The Week
2012 is a great year to buy a heavy SUV! You can deduct much of the cost this year. Let's assume that your business purchased and started using a new heavy SUV costing $60,000 before December 31 of this year. The business could take a total...
by | Oct 19, 2012 | Small Business Owners, Tax Tip of The Week
Very often, the founder of a company wishes to pass ownership of a business to his children. But in order to get advantageous capital gain rates, it is important to meet certain requirements. The IRS in a recent private letter ruling stated that the founder...
by | Sep 19, 2012 | Income Taxes, Tax Tip of The Week
A taxpayer made a contribution to her church’s scholarship fund. She wanted it to be used to pay the tuition of the minister’s daughter. The IRS determined that the contribution was really a gift from her to the minister’s daughter. Accordingly,...
by | Sep 6, 2012 | Income Taxes, Tax Tip of The Week
A casualty loss is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Deductible losses include car accidents, fires, floods, storms, thefts, vandalism, tornados, etc. Non-deductible losses that...
by | Aug 23, 2012 | Income Taxes, Tax Tip of The Week
A recent tax court case stated that a man could not offset other passive losses with net rental income from a property he rented to a closely held corporation in which he worked more than 500 hours per year. This is a special rule that treats the net rental...
