July 31st, 2018 by Kim Chen
The taxpayer owned a smog inspection station in California. By law, he was required to keep certain invoices and records regarding smog checks for at least three years. Because the station lacked office space, the taxpayer stored the inspection invoices and other business-related items in a shared two-car garage attached to his personal residence. On […]
July 26th, 2018 by Kim Chen
For tax years 2018–2025, a taxpayer’s itemized deduction for State and Local Taxes (SALT) is limited to $10,000 ($5,000 if married filing separately) per year. Recently, New York, Connecticut, Maryland, and New Jersey filed a complaint with the U.S. District Court for the Southern District of New York seeking declaratory and injunctive relief to invalidate […]
July 18th, 2018 by Kim Chen
In a recent News Release, the IRS announced that it will waive certain late payment penalties related to the IRC Sec. 965 transition tax. The announcement also includes information related to the due date for relevant elections. The relief information was explained in three new FAQs posted on the IRS’s tax reform page. The FAQs […]
July 13th, 2018 by Kim Chen
The taxpayer, an investment fund adviser, incurred several million dollars in legal fees during his divorce proceedings. He deducted $1.3 million of the fees for 2010 and $1.6 million for 2011. Legal fees incurred during divorce may be deductible if the spouse is interfering in the taxpayer’s business or the issue relates to taxable alimony […]
July 8th, 2018 by Kim Chen
Despite the uptick in interest rates, an improved economy may lead to a resurgence of interest in vacation or second homes. These properties offer a chance to provide the family with a place to rest and relax at a reduced cost when compared to expensive short-term resort rentals, and at the same time give owners […]
July 3rd, 2018 by Kim Chen
Despite the uptick in interest rates, an improved economy may lead to a resurgence of interest in vacation or second homes. These properties offer a chance to provide the family with a place to rest and relax at a reduced cost when compared to expensive short-term resort rentals, and at the same time give owners […]
June 7th, 2018 by Kim Chen
You might be in a rush to buy or sell a home before summer starts or interest rates increase even more. But, first, it’s important to review the tax rules related to home sales and deductions for mortgage interest, property taxes and work-related moving expenses. Beware: Some rules have changed under the Tax Cuts and […]
June 3rd, 2018 by Kim Chen
The petitioner was an LLC wholly owned by a husband and wife. Its 2010 and 2011 tax returns (Form 1065, which were filed late, stated that the election to be covered under TEFRA unified audit procedures was still in existence and in force. In 2014, the IRS attempted to collect unpaid income tax liabilities and […]
May 31st, 2018 by Kim Chen
Are you confused about the federal income tax rates on capital gains and dividends under the Tax Cuts and Jobs Act (TCJA)? If so, you’re not alone. Here’s what you should know if you plan to sell long-term investments or expect to receive dividend payments from your investments. Old Rules Prior to the TCJA, individual […]
May 10th, 2018 by Kim Chen
Thanks to the Tax Cuts and Jobs Act (TCJA), inflation-adjusted amounts are now indexed using the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). Because of this, the maximum deductible Health Savings Account (HSA) contribution for taxpayers with family coverage under a High Deductible Health Plan (HDHP) was reduced from $6,900 to $6,850. In […]
© 2024 Rogers Wood Hill Starman & Gustason / Privacy Notice / Disclaimer
