Short-term rental or vacation rental properties have increased in popularity. They are also popular investments. This includes real estate rented on Airbnb and its competitors, such as Vrbo, Booking.com, Tripadvisor, Agoda, Expedia, TUI Villas, TravelStaytion, HomeToGo, Plum Guide, and Google. Taxes are one reason for the increase in popularity. Short-term rentals can provide a number……
TX-LW Blogs
Defining Real Estate Activities Broadly
There are quite a few uses for raw land. It can be used for just about any type of business activity. If someone purchases raw land and starts to take steps to prepare the land for a business, how one characterizes the intended business use can allow or limit the deductions related to the property.……
Filing Jointly v. Separately: Impact on Innocent Spouse Relief
There are a number of factors those who are married have to consider when deciding on their tax filing status. If you were to search for information about the difference between filing jointly v. separately (or mfj vs mfs), you would likely find articles that explain the mathematical calculation. They explain which tax deductions and……
S Corporation Election Not Signed by Community Property Spouse is Valid
There are tax implications for just about everything we do. Even simple business transactions present tax opportunities and pitfalls. While we prefer to focus on tax opportunities, we also spend a lot of time fixing tax problems. We are in Texas, which is a community property state. So one issue we see over and over……
IRS Whistleblower Claims Denied for Inadequate IRS Audit
The Revenue Restructuring Act of 1998 made significant changes to the IRS. One change is that IRS employees cannot be rewarded based on enforcement efforts. This has changed the nature of the relationship between IRS management and IRS employees. For example, IRS auditors report to group managers. Group managers focus mostly on assigning audit cases……
Can a Self-Directed IRA Hold Gold Coins?
Precious metals IRAs are popular. This includes silver IRAs, gold Roth IRAs, and even gold-backed IRAs. These accounts allow investors to invest in these alternative assets. This in turn allows the investors to diversify their exposure to stocks and bonds. For those with special interests and knowledge to make these investments, they can also allow……
Business Condo Association Denied Non-Profit Status
Non-profits do not pay Federal income taxes. Many states also exempt these entities from state income taxes. The local tax assessor may also exempt the entity from property taxes. The IRS regulates non-profits by denying non-profit status to entities. It also has a whole regime of penalties and excise taxes to deter for-profit entities from……
Court Recasts Gift of LLC Interests
Real estate has been a great investment. In addition to the potential for appreciation of the property, it may also have the added benefit of producing rental or other income. Real estate can also have income tax advantages. This can help reduce one’s income tax liability during their peak earning years. Many taxpayers buy real……
Relying on Advice From the IRS
IRS employees often give bad and incorrect tax advice. There are numerous examples of this in reported tax cases. Unlike advice provided by licensed professionals, such as tax attorneys, one generally cannot prevail in a malpractice suit against the IRS. That leaves the question as to whether bad or incorrect advice from the IRS can……