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 […]

FAMILY GETS PRISON FOR COVID FRAUD

Family gets prison for Covid fraud. Three members of a San Fernando Valley family have been sentenced two of them in abstentai after they fled justice following their convictions at trial–to years in federal prison for scheming to fraudulently obtain more than $20 million in Paycheck Protection Program and Economic Injury Disaster Loan Covid 19 […]

DISTRIBUTIONS FROM CARES PLANS

Distributions from cares plans. The IRS explained how qualified individuals can take coronavirus related loans and distributions from eligible retirement plans (Notice 2020-50). Qualified individuals receive favorable tax treatment for those distributions under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136. Distributions: A coronavirus related distribution is not subject to the Sec. […]

INSURANCE POLICY AVOID TAX

Insurance policy avoid tax. The new hot thing in tax avoidance has a boring old name: insurance dedicated funds. Introduced in the 2000s, IDFs have become  so mainstream that banks such as JPMorgan Chase and Co. and Goldman Sachs Group Co. are offering them. Hedge funds like Paulson & Co. and Israel Englander’s Millennium Partner’s […]

TAX REFORM FACT SHEET

Tax reform fact sheet. In looking at tax reform, the White House has proposed radical changes to the tax code which include both individual and business tax reform. This proposal would eliminate the estate tax and the alternative minimum tax. Corporations would not have to pay taxes on their foreign profits and would be able […]

DIFFERENCES IN SECOND STIMULUS PLANS

Differences in second stimulus plans. The size of the already passed stimulus package is massive. The $2.4 trillion exceeds some of the world’s largest economies, including the $21 trillion economy of Italy, the $1.9 trillion economy of Brazil, and the $1.7 trillion economy of Canada. Only six other countries (China, Japan, Germany, United Kingdom, France, […]

GETTING READY FOR YOUR 2019 TAXES

Getting ready for your 2019 taxes. The Internal Revenue Service urged taxpayers to act now to avoid a tax time surprise and ensure that they have smooth processing of their 2019 federal tax return. The IRS urges everyone to use the tax withholding calculator to perform a paycheck or pension income checkup. This is even […]

RENTAL PROPERTIES SAFE HARBOR RULES

Rental properties safe harbor rules. The IRS has issued safe harbor guidelines for the owners of rental properties in order to qualify for the new 20% deduction (Section 199A). While your rental activities may be considered an eligible trade or business with appropriate substantiation, the IRS has provided the following requirements if you elect to […]

THINGS TO DO NOW FOR NEXT YEARS TAXES

Things to do now for next years taxes. Start by making a checklist of all your priorities. You may need a paycheck checkup. Following the tax low changes passed by President Trump and the Congress, you should do a paycheck checkup using the IRS‘s Withholding Calculator and, if necessary, complete a new W-4 form. The […]

OCTOBER 15TH DEADLINE FOR EXTENSIONS

The October 15th deadline for extensions.  Its right around the corner. The IRS is reminding taxpayers who filed extensions that electronic filing and other options for help with taxes are still available before October 15th deadline. Taxpayers who did not request an extension and have yet to file a 2017 tax return can generally avoid […]