In the complex realm of the legal system, judges hold the vital responsibility of making impartial decisions, drawing from their wealth of life experiences. These experiences, in turn, have a profound influence on the judgments they render. This principle extends to other government officials as well, such as IRS agents, auditors, and attorneys, who are……
Tag: Tax
An Appraisal is Not Always Needed for a Casualty Loss Deduction
Casualty losses are often challenged by the IRS, as they meet the “large, unusual, or questionable” (“LUQ”) standard for pulling returns for audit. On audit, the IRS insists on an appraisal from a third party that shows the difference in fair market value before and after the casualty event. Even if an appraisal is provided……
The Non-Taxable Return of Capital
Our tax laws acknowledge that a return of capital doesn’t trigger income tax. The fundamental concept is that when property is taken away from a taxpayer and then returned to them, it doesn’t result in an increase in their net worth. Rather, their net worth is restored to where it was before, and since there……
Recovering Taxes Paid for Another Party
If you pay tax for another party, can you recover the payment if the tax is not owed? The answer is generally “no,” as you cannot sue the Federal government unless it consents and it only consents in limited circumstances. One such consent is the ability to sue for a refund. The rules that allow……
The Fine Print in the IRS Refund Payment Rules
Our tax laws have a number of arbitrary deadlines which often result in problems for taxpayers, rather than the IRS. Late submissions usually mean that the taxpayer ends up paying more tax than they actually owe. However, there are a few timing rules that apply to the IRS, one of which involves the time frame……
Avoiding Penalties: Choosing a Reliable Tax Return Preparer
With the tax season around the corner, a significant number of taxpayers are seeking the services of tax return preparers. This often involves choosing a preparer who has been recommended by friends and family members. Tax return preparers may be referred based not on their qualifications, but on their reputation for generating large refunds for……
Amount of 179D Tax Deduction for Building Designer
Congress often creates tax incentives, but it is up to the IRS and courts to determine their implementation and interpretation. The Sec. 179D tax deduction is an example of this. The statute provides broad concepts but lacks substance, leading to the courts playing a crucial role in determining its implementation and interpretation. The details matter……
Tax Court: Is Diabetes is a Disability?
If you find yourself without a job or facing unemployment, one of the options you might consider is taking a distribution from your retirement account. This is especially true if you are disabled and need the income to pay for your living costs or even your medical care. These distributions often result in additional Federal……
About the Monetized Installment Sale
The monetized installment sale is a tax strategy that allows a party to sell an appreciated asset while deferring capital gains tax for an extended period of time and receiving a significant portion of the sale proceeds in cash. The strategy involves the use of an installment sale and a monetization loan, which allows the……