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...
by | Aug 16, 2012 | Accounting & Bookkeeping, Income Taxes, Tax Tip of The Week
A reminder to employees about taking business expenses on Schedule A: Any expenses that an employer would have reimbursed are not deductible according to the Tax Court (Stidham, TC Summ. Op. 2012-61). In that case, a taxpayer listed business expenses such as overnight...
by | Aug 2, 2012 | Income Taxes, Tax Tip of The Week
According to IRS officials, identity thieves took stolen Social Security numbers and filed unauthorized refunds early in the past filing season. Taxpayers discovered their identity had been stolen only after they filed their true tax returns and had the return...
by | Jul 16, 2012 | Income Taxes, Tax Tip of The Week
In today’s bad economy I often see taxpayers who have received a form 1099-C for forgiveness of debt. Most taxpayers have been trained by the IRS to believe that if they received a 1099 of any type, they have taxable income. But there are four areas where the...
by | Jul 7, 2012 | Accounting & Bookkeeping, Current Affairs, Income Taxes, Tax Tip of The Week
After 2012, the estate tax law will revert to what was in effect before 2001 unless Congress acts. The current $5.12 million estate and gift tax exemption would fall to $1 million, while the maximum tax rate will rise to 55%…a 20 percentage-point...
