September 25th, 2016 by Kim Chen
NOLs must first be carried back for two years, with the remainder carried forward for up to 20 years. However, an election can be made to waive the carryback and carry the entire loss forward. In this case, the taxpayer claimed deductions for NOL carryovers stemming from his ownership in S corporation video store liquidation […]
September 21st, 2016 by Kim Chen
In a Program Manager Technical Advice (PMTA), the IRS has indicated that, because the language dealing with rollovers of IRAs in IRC Sec. 408(d)(3)(B) is so similar to the rules on Coverdell Education Savings Accounts (Coverdell ESAs) in IRC Sec. 530(d)(5) , only one rollover for a Coverdell ESA is allowed per individual, per year. […]
September 13th, 2016 by Kim Chen
The IRS has announced that it will follow the Ninth Circuit’s decision in Voss (116 AFTR 2d 2015-5529) that the Section 163(h)(3) qualified residence interest limitations ($1 million of acquisition indebtedness and $100,000 of home equity indebtedness) are applied on a per-individual basis, and not a per-residence basis. Under this interpretation, unmarried co-owners are collectively […]
August 28th, 2016 by Kim Chen
In 2010 and 2011, the taxpayers claimed noncash charitable contribution deductions of $79,000 and $90,000, respectively. These amounts represented approximately 46% of the taxpayers’ adjusted gross income for each year. According to summary spreadsheets prepared by the taxpayers after their returns were filed, the contributed property included over $110,000 of used clothing. Upon audit, the […]
August 24th, 2016 by Kim Chen
IRS Summertime Tax Tip 2016-12, July 29, 2016 Do you plan to donate your time to charity this summer? If you travel for it, you may be able to lower your taxes. Here are some tax tips that you should know about deducting charity-related travel expenses: •Qualified Charities. To deduct your costs, you must volunteer […]
August 16th, 2016 by Kim Chen
IR-2016-103, Aug. 11, 2016 WASHINGTON — The Internal Revenue Service today alerted tax professionals to an emerging phishing email scam that pretends to be from tax software providers and tries to trick recipients into clicking on a bogus link. The email scheme is the latest in a series of attempts by fraudsters to use the […]
August 12th, 2016 by Kim Chen
A married couple owning a business of marketing petroleum properties used their personal autos for business travel. For some activities, the husband kept a daily log of the miles he drove for clients, which he recorded upon returning to the office. However, for other trips, his recordkeeping wasnÆt so detailed. He either estimated the mileage […]
August 8th, 2016 by Kim Chen
In a recent Program Manager Technical Advice Memorandum (PMTA), the IRS Office of Chief Counsel clarified which penalties apply when a Form 1041 (Beneficiary’s Share of Income, Deductions, Credits, etc.) is filed with the IRS and furnished to a beneficiary with an incorrect Taxpayer Identification Number (TIN). The Section 6723 penalty, which covers failures to […]
August 4th, 2016 by Kim Chen
Written by Ronald W. Gustason, CPA Most of us know that identity theft is an ever growing problem in the 21st century. It happens when someone uses your social security number or other personal information to open or access bank accounts, make purchases, or get a tax refund. We have all heard or read about […]
August 1st, 2016 by Kim Chen
In 2010 and 2011, the taxpayers claimed noncash charitable contribution deductions of $79,000 and $90,000, respectively. These amounts represented approximately 46% of the taxpayers’ adjusted gross income for each year. According to summary spreadsheets prepared by the taxpayers after their returns were filed, the contributed property included over $110,000 of used clothing. Upon audit, the […]
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