Fixing Self-Directed IRA Errors

There are ways to structure transactions to avoid income taxes. Creative taxpayers and tax attorneys have used qualified retirement accounts for this purpose (the tax savings from ESOPs is an example). One has to be careful when structuring transactions involving these qualified plans. Given the flexibility in the rules and the absence of financial advisors,……

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Hobby Loss vs. Start-Up Expense?

Just about every business starts out with losses. This is the nature of start-ups. The activity will either gain traction and produce income and possibly a profit or, eventually, the activity end. This is basic economics and capitalism at work. The U.S. economy is based on these concepts, allowing would-be entrepreneurs the opportunity and motive……

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Tax on Damages for Loss of Consortium

Those who receive damages from physical injuries or sickness are not required to pay tax on the damage award or settlement.  That is the general rule.  But what about ancillary claims by others?  What about a lawsuit for physical damage that also includes a claim for the injured parties spouse?  What if the taxpayer-husband was injured and the……

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