Understanding IRS Letters and Notices
Receiving a letter or notice from the Internal Revenue Service (IRS) could be very stressful. The IRS has ramped up tax collection enforcement due to the recent funding allocated to hiring more employees to collect tax due. Further, collection activities that were...
Married Filing Jointly vs. Married Filing Separately
Many married couples frequently ask the question: Should we file our tax jointly or separately? The answer: It depends. Taxpayers financial circumstances could be very different. There are many factors to consider to determine the filing status that could be more...
Do You Know Who is an Independent Contractor and Who is an Employee?
Does your business classify workers as independent contractors instead of employees? You should know that the U.S. Department of Labor is trying to make it harder for all businesses to use independent contractors. The Department of Labor enforces the Fair Labor...
How Important is Your Business Structure?
Your decision to start a business should start with tax planning. You need to meet with a tax professional to discuss your decision to start a business, to purchase a business, or to purchase a franchise. This should be the most important step. As a potential business...
Can You Claim a Business Deduction for a Business that Never Began?
In Eason v. Commissioner, T.C. Summary 2024-17, the Tax Court held that the Internal Revenue Service properly disallowed deductions resulting from expenses taxpayers claimed in connection with a real estate business because by the close of the year at issue the...
Should we File our Tax Return Jointly or Separately?
Many married couples usually ask the question: Should we jointly file our tax return or should we file separately? The answer: It depends. Taxpayers financial circumstances could be very different. There are many factors to consider to determine the filing status...
15 Exceptions to the 10 Percent Penalty of Early IRA Withdrawals
Early withdrawals from a traditional IRA before age 59 1/2 generally incur a 10 percent penalty tax on the taxable portion of the withdrawal. There are several exceptions to this rule that can help you avoid the penalty under specific circumstances. I have outlined...
Understanding Cost Segregation
One significant tax benefit of owning residential rental property or non-residential commercial or investment property is depreciation, a deduction you get without spending any additional money. However, regular depreciation for real property is slow. Residential...
Understanding Injured Spouse Tax Relief
Married taxpayers could still receive a refund when they jointly file their tax return even when the refund or part of the refund was applied or will be applied to pay a past due obligation of one spouse. You are an injured spouse if you filed a joint tax return...