Congress has used Section 172 for net operating losses to stimulate the U.S. economy. It has done this by allowing certain losses to be carried back, thereby generating cash refunds to the taxpayer. This puts cash into the hands of taxpayers who are suffering losses. One only has to look at the history of changes……
TX-LW Blogs
Who Qualifies as a “Designer” for Section 179D Energy Tax Deductions?
Contractors regularly upgrade HVAC systems and lighting in commercial buildings to improve energy efficiency. These projects can be expensive. When the building owner is a government entity, the tax code allows contractors to claim an immediate tax deduction for the cost of energy-efficient improvements under Section 179D. But not every contractor who touches the building……
A Common Probate Challenge: Voiding Real Estate Deeds Based on Mental Incapacity
A family member signs over her home to a grandchild. Weeks later, she’s declared legally incapacitated. The family questions whether she truly understood what she was doing when she signed. But here’s the challenge: nobody performed a mental evaluation on the exact day she signed the deed. Does that mean the deed stands? This scenario…
Qualified Offer Delivery: “Addressed To” vs “Delivered To”
You’ve done everything right in working with the IRS and the IRS still got it wrong. You’ve exhausted your administrative remedies and you have to hire a tax attorney. Now you are incurring costs just to correct the IRS error. The attorney has you make a proper qualified offer under Section 7430(g) to recover attorneys……
What Secured Creditors Lose When They Miss the 90-Day Deadline in Dependent Administrations
When someone dies owing you money secured by real property, you face important choices about how to collect. You hold a lien on the property itself. But what if the property doesn’t sell for enough to cover the full debt plus all accrued interest, late fees, and attorney’s fees? Can you pursue the estate for…
Convert Interest Income to Capital Gains on Sales by Omitting Interest?
Business transactions can be structured in any number of ways. Those who are tax savvy can structure their transactions to minimize and even avoid paying taxes. There are tax provisions that specifically allow for tax savings. To achieve the tax savings, one only has to structure the transaction to meet the requirements of the statute.……
Can the IRS Require Personal Information for a Business Tax Debt?
You have a business entity. You took the time to form it. You made all of the tax filings. And then the business can’t pay its own tax liabilities. It owes the IRS back taxes. As you try to work with the IRS to resolve the balance, the IRS wants to know about your personal……
Churches, Families, and Private Inurement
When you earn a dollar, you pay income tax and probably paid payroll or self-employment tax on it. When you spend what is left of the dollar after these taxes, you often pay a sales tax, property tax, or excise tax on the item purchased with the dollar. You may also pay an inflated price……
The Difference Between a Bad Business Investment and a Theft Loss
Business ventures fail for countless reasons. Partners mismanage funds. Projects never materialize. Promises about how capital will be deployed go unfulfilled. When an investment goes south, the parties have to figure out how to minimize the damage. This often shifts the focus to how to benefit from the loss, which can warrant closer examination of……