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Analysis of Trump Tax Plan versus Clinton Tax Plan – One Day Shelf Life

This quick analysis is subject to change and is possibly accurate as of August 15, 2016.  If there is anything wrong with it, there are a few possible reasons.  For example, the blog may have been misstated by the “disgusting and corrupt media.”  Alternatively, somebody – probably Russian operatives – may have hacked my email…

How Would You Like to Win a BRAND NEW… Tax Bracket?

Carrie Reese, CPA, guest blogs today while I am lounging in Northern Michigan on the shores of Grand Traverse Bay.  Carrie is a valued member of our tax department, an up-and-coming leader in the Dallas Society of CPAs, and a new mom.  She’s pretty funny, too. Earlier this year (two days after the tax deadline…

When in Doubt, Fill it Out

Some of the most draconian financial penalties levied by the U.S. Treasury are associated with the Foreign Bank and Financial Accounts Report (“FBAR”).  This report is made on FinCEN Form 114 by U.S. persons having a financial interest in or signature authority over foreign financial accounts, if the aggregate value of the foreign financial accounts…

Aw, the IRS has a heart

Today, the IRS issued Announcement 2016-25:  Tax Treatment of Payments made on Behalf of or Reimbursements Received by Residents Affected by the Southern California Gas Company Natural Gas Leak. Let’s refresh our memories.  The Aliso Canyon gas leak (also called the Porter Ranch gas blowout) was a massive gas leak from a well that was…

Hey Vance, can I deduct my car expenses?

That’s not an unusual question.  The exchange continues often like this. Vance:  Do you have contemporaneous records that document (1) the amount of the expense; (2) the time and place of the travel or use; and (3) the business purpose of the expense? Client:  Well . . . Vance:  How about an after-the-fact reconstruction of…

OUCH!

I agree with the IRS’ and Tax Court’s interpretation of the law, but Mr. Udeobong sure paid through the nose – twice, to be exact.  I’ll save you the gory details.  In fact, they might make you a little less sympathetic.  In any case, Mr. Udeobong still took a lickin’.  Here is the summary and…

Psychometrician ≠ Tax Expert

Professor Emeritus Lawrence M. Aleamoni is a psychometrician.  I am not exactly sure what that means, but I assure you that it does not mean “tax expert.”  Actually, it seems that one may not have to have taken a single accounting course to be a psychometrician. Professor Aleamoni many years ago established a corporation in…

Caught Twixt a Rock and a Hard Place: The IRS and Hobby Losses

I’ve blogged about hobby losses a few times.   Section 183 of the Internal Revenue Code generally disallows business tax deductions for activities “not engaged in for profit” – hobbies.  The regulations under Section 183 provide a nonexclusive list of nine factors used to analyze a taxpayer’s profit objective with respect to an activity.  In the…

Get a Slurpee; Pay Your Taxes – The Conspiracy Theory

Bear with me, please.  I am not usually a conspiracy theorist, but I may be on to something.  There could be a plot afoot in which President Obama pulls a fast one to undermine Ted Cruz and/or Donald Trump and/or whomever and to grease the path to the presidency for Hillary Rodham Clinton. For a…

Health Care Forms: They are Confusing – For Everyone, It Seems

Some of my confusion may come from the fact that I am following my spring busy season sleepless pattern.  Does the following make any sense to you? At 3:11 p.m. yesterday I received an “IRS Tax Tips” email entitled:  “Corrected:  IRS Health Care Tax Tip 2016-45:  Don’t Confuse Health Care Forms.” At 3:13 p.m. yesterday…

“It’s déjà vu all over again!” -Yogi Berra

Last week, I was reading headnotes of just-released Tax Court cases and I ran across one that was eerily familiar.  Says I to myself:  “I have already blogged about this case.”  I reviewed my old blogs and found that I had written about a very similar Tax Court case on September 17, 2014.  Do people…

A Couple of S Corporations, A Couple of Rental Arrangements, A Couple of Taxpayer Losses

Recently, two Circuit Courts shot down the taxpayers in two cases involving rents and S Corporations. In the Estate of Stuller, the Seventh Circuit Court of Appeals addressed a Tennessee Walking Horse breeding operation held in an S Corporation.  Surprise! The IRS, the District Court, and the Seventh Circuit found that the breeding operation was…

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