Want to help your child (or grandchild) buy a home? Don’t wait!
Posted by Kim Chen on May 30th, 2017
Mortgage interest rates are still at low levels, but they likely will increase as the Fed continues to raise rates. So if you’ve been thinking about helping your child — or grandchild — buy a home, consider acting soon. There also are some favorable tax factors that will help: 0% capital gains rate. If the […]
Now’s a great time to purge old tax records
Posted by Kim Chen on May 30th, 2017
Whether you filed your 2016 tax return by the April 18 deadline or you filed for an extension, you may be overwhelmed by the amount of documentation involved. While you need to hold on to all of your 2016 tax records for now, it’s a great time to take a look at your records for […]
No Refund for Untimely Filed Offshore Disclosure Program Amended Returns
Posted by Kim Chen on May 30th, 2017
The Offshore Voluntary Disclosure Program (OVDP), which is for taxpayers that have failed to meet foreign bank account reporting requirements, requires the filing of amended returns for eight years. The taxpayer was an OVDP participant for whom the disclosure period was for tax years 2003 through 2010. For all tax years except 2008, the taxpayer […]
Benefits Paid Under Employer’s Self-Funded Plan Are Includible In Employee’s Income
Posted by Kim Chen on May 27th, 2017
Chief Counsel Advice 201719025 In Chief Counsel Advice (CCA), IRS has determined that benefits paid under an employer-provided self-funded health plan for an employee’s participation in certain health-related activities didn’t qualify for exclusion under Code Sec. 104(a)(3) and were thus includible in the employee’s income. IRS reasoned that the plan neither involved insurance risk nor […]
Bed and Breakfast Owner’s Deductions Were Disallowed
Posted by Kim Chen on May 24th, 2017
The taxpayer held a 50% interest in an LLC (a partnership for tax purposes) that owned and operated a bed and breakfast house in Indiana. After several years of unprofitability, the property was listed for sale while caretakers resided at and maintained it. During that time, the taxpayer made several trips from his home in […]
