TAX COURT CASE ON PROCEEDS FORMULA

Tax Court case on proceeds formula. The Eleventh Circuit found the IRS‘s interpretation of the judicial extinguishment proceeds formula for conservation easements to be procedurally invalid under the Administrative Procedure Act. In 2012, David Hewitt made a conservation easement contribution to the Pelican Coast Conservancy Inc. The recorded deed of conservation easement reserved Hewitt’s and […]

HOW TO AVOID 401(k) WITHDRAWAL TAXES

How to avoid 401(k) withdrawal taxes. With the Covid pandemic and need for more government money to help the U.S. economy along, Congress has been looking for alternative sources of income. Taxing retirement plans more than they had been before was discussed by the Congress as an alternate way of doing just that. The 401(k) […]

RICH CONTINUE TO INFLUENCE TAX SYSTEM

Rich continue to influence tax system. Ever since the Panama Papers, followed by the Pandora Papers, showed that the world’s rich, including sports figures, politicians, celebrities, many from the United States, were all gaming the system, by hiding money in offshore accounts to avoid the taxman, we have heard the politicians and rich all line […]

IRS TAX COURT EASEMENT CASE

IRS tax court easement case. In our ongoing coverage of Tax Court cases, we highlight this case, which discusses easement issues. The Internal Revenue Service urged taxpayers involved in designated syndicated conservation easement arrangements to consult with their tax advisors following a recent U.S. Tax Court decision and agency plans to continue enforcement efforts in […]

TAX COURT FINDS AGAINST TAXPAYER

Tax court finds against taxpayer. To be a real estate professional, a taxpayer must meet the following two tests under IRC Section 469(c)(7)(b): More than half of the personal services performed in trades or businesses by the taxpayer during the calendar year are performed in real property trades or businesses in which the taxpayer materially […]

RULES ELIMINATE ESTATE AND GIFT TAX CLAWBACK

Rules eliminate estate and gift tax clawback. IRS Reg-106706-16, amending Regs. Sec. 20.2010-1 to conform with the temporary increase in the basic exclusion amount for estate and gift tax enacted by the legislation known as the Tax Cuts and Jobs Act, P.L. 115-97. For gifts made and estates of decedents dying before Jan. 1, 2018, […]

TRUMPS TAX CUT GROWTH IS OVER

Trumps tax cut growth is over. The Trump Administration pushed a $1.5 trillion tax cut through Congress in 2017 on the promise that it would spark sustained economic growth. While the tax cuts have goosed the economy in the short term, officials now concede they will not be enough to deliver the 3 percent annual […]

THINGS THAT YOU MAY NOT REALIZE ARE TAXABLE

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Things that you may not realize are taxable. Everyone knows that wages are taxed by the federal government, but Uncle Sam has a far reaching definition of “taxable income”. It covers numerous types of earnings that many people don’t realize are subject to federal income taxes. What follows are several examples of taxable income that […]