Are Energy Investment Tax Credits Subject to Passive Activity Rules?

There are a number of benefits for investing in renewable energy projects. The energy investment tax credits is one such benefit. Given the specialized nature of energy projects, these tax credits are often sold to taxpayers as investments by firms that organize and operate these investments. After making the investment and receiving allocation notices from……

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Can Self-Employed Taxpayers Deduct the Value of Their Own Time?

Small business owners and self-employed professionals often spend countless hours developing products, services, or processes that enhance their business operations. A construction contractor might spend weekends designing custom software to track job costs. An engineer might devote evenings to developing a proprietary modeling program. In these situations, many entrepreneurs wonder: if they had hired someone……

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Do FBAR Penalties Die With the Taxpayer?

When someone has an undisclosed foreign bank account that the government has not yet assessed penalties for and they die, can the government still pursue the penalties? The answer hinges on a fundamental legal classification that courts are actively debating—are FBAR penalties primarily punitive fines or remedial damages? If FBAR penalties are primarily punitive, they……

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Claiming a Casualty Loss for Property You Don’t Own

Natural disasters can be expensive. This is particularly true for those who own or have an interest in real estate. Our tax laws provide some relief through casualty loss deductions and theft loss deductions. But what happens when someone pays to repair property they don’t legally own? This question is particularly relevant when parents continue……

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Can the IRS Collect When the IRS Owes the Taxpayer?

The federal tax system provides various procedural safeguards to protect taxpayers while ensuring efficient tax collection. These protections become particularly important when taxpayers face immediate collection actions while simultaneously pursuing tax credits or refunds that could eliminate their tax debt. Many businesses have recently found themselves in this situation after filing amended returns to claim……

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Evaluation of Valuations for Charitable Contributions

The valuation of property for charitable contribution deductions represents one of the most challenging areas of tax compliance for both practitioners and taxpayers. While the tax code encourages charitable giving through deductions, it also demands rigorous substantiation and accurate valuations to prevent abuse. For real estate donations in particular, determining the appropriate value requires careful……

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