Should You Repair Your Real Estate Property or Improve it?
The distinction between repair expenses and improvement costs can impact your tax benefits. The tax law categorizes repair and improvement costs differently. Repair expenses are generally more beneficial for tax purposes, providing greater after-tax cash value than...
Getting a Tax Penalty Abatement
Taxpayers in many situations are receiving notices of tax due from the Internal Revenue Service after filing a tax return, when they did not file, when they did not pay, or when they fail to deposit employment tax (TFR- Trust Fund Recovery). Unfortunately, many...
Is your Real Estate Activity a Business or an Investment?
The ability to deduct the costs of your real estate seminars, boot camps , or similar expenses largely depends on the nature of your real estate activities. Are they considered a business or an investment? This distinction is crucial for understanding your tax...
Are Corporate Advances to the Owners Salary, Loans, or Dividends?
If you operate your business as a C or an S corporation, and if you loan money to the corporation or the corporation loans money to you, you need documentation that the loan is indeed a loan. With the S corporation, the loan that fails as a loan can result in taxable...
Tax Filing Implications for US Citizens and Resident Aliens Working Abroad
Many taxpayers who live and work in various parts of the world, such as Switzerland, have concerns about their U.S. tax obligations. We want to alert you to the tax implications you might encounter as a U.S. citizen or resident alien living or working abroad. We are...
Proving your Business Travel Expenses to the Internal Revenue Service
This tax tip provides some crucial information on how to document expenses during a business travel. Corporation or proprietorship - If you operate as a corporation, the corporation should reimburse you for the travel expenses or pay for them directly. Remember, you...
A False Payment Plan Statement is Evidence of Tax Evasion
In United States v. Crandell, 2023 PTC 178 (5th Cir. 2023), the Fifth Circuit held that a district court did not abuse its discretion by denying a taxpayer's motion for mistrial after a jury convicted him of tax evasion under Code Section 7201 for...
Taxpayer Properly Excluded canceled Debt from Income
In White v. Commissioner (White v. Comm'r, T.C. Memo. 2023-77), the Tax Court held that the discharge of White's indebtedness of $14,433 was excluded from gross income. The taxpayer was entitled to exclude cancellation of indebtedness income resulting from the...
Abused Taxpayer Gets Tax Debt Relief
In Gans v. Commissioner, the taxpayer prevailed over the Internal Revenue Service by establishing that she was abused by her husband, among others, and consequently qualified for relief from joint tax liability. Married taxpayers are jointly and severally liable for...