TaxThink

IRS Again Creates Confusion with Conference Call that Contradicts Published Guidance

A disturbing trend has developed at the National Office of the IRS where it attempts to significantly revise published guidance via a somewhat obscure conference call. 

Getting Ready for Large Tax Increases – Taking Stock of what is in Store

It is time to review precisely where tax rates are going over the next few years as we are exactly six months away from the biggest tax increase in nearly 17 years.

House Passes Small-Business Tax Bill

The House on June 15 passed a small-business tax bill that essentially would eliminate the use of GRATs as an effective estate planning tool for most senior family members.

Business and Real Estate Owners May be Missing Valuable Opportunity

Certain taxpayers may be overpaying their current taxes because they misclassify deductible repairs and maintenance expense as capital improvements.

Passive Activity Loss Rules May Disallow Deduction of Current Losses Unless Taxpayer is a Qualifying Real Estate Professional

An individual's rental real estate activities, including those owned through pass-through entities, automatically fall under the passive activity loss (PAL) rules regardless of whether the taxpayer materially participates in the activity. 

Employers Who Hire or Rehire Employees May Qualify for Important Tax Break

Employers who previously laid off employees as a result of a lack of work, or due to a change of season, may be able to take advantage of this new provision. 

Don’t Jump from the Bridge… yet… President signs Patient Protection and Affordable Care Act

Tax increases resulting from health care legislation will not take effect until 2013.

What are your chances for being audited?

If You Like Challenges – Choose a Career in Tax

A relative newcomer to the profession says it’s the thrills and spills that make this career choice worthwhile.

Second Shot at a “Once in a Lifetime” Benefit

Special tax benefit originally aimed at Chrysler could benefit your closely held C Corporation. 

Beneficiary Designation Forms: The most important estate planning form that you don’t know about.

President’s Budget for Fiscal 2011 Will Significantly Increase Your Taxes

IRS Proposed to Require Notification of FIN 48 Uncertain Positions

The IRS is now proposing that taxpayers provide them with a roadmap to potential audit adjustments and to provide them with worse case estimate.

Favorable IRS Interest Rates Create Estate Planning Opportunities

With IRS interest rates at historic lows and legislative changes in the air, now is the time to lock in significant tax savings by moving your estate planning forward by utilizing one of these techniques.

Tax Extenders Act of 2009 Extends a Variety of Pork Barrel Provisions

Every year Congress enacts a one-year extension for a variety of politically popular provisions for which it has to scramble to pay. 

Energy Credits Saving More Valuable in 2009 than 2010

Nonbusiness energy credit can be used to offset alternative minimum tax in 2009, so you should not put off buying qualifying property until 2010. 

Generous Education Tax Credits Available to Certain Taxpayers in 2009

An overlooked provision included in 2008 Stimulus legislation may generate significant benefits for certain individuals attending a higher education institution located in a Midwestern Disaster Area in 2008 and 2009.

Home Buyer’s Credit Provisions Vary Greatly

The popular first time home buyer’s credit has undergone significant changes since enactment.

Comparison of NOL Carryback Provisions Summary - Tax changes occur so frequently it's difficult to keep them straight.

Because there have been so many tax changes that revise recently enacted legislation with different effective dates, its difficult to keep the changes straight. 

Congress passes Worker, Homeownership, and Business Assistance Act of 2009

2009 Federal Tax Update

How IRS Interest Rates Affect Your Transfer Tax Planning

Numerous Expiring Tax Provision May Significantly Increase Your Future Tax Bill

Expiring provisions give Congress and the President a way to raise taxes without debating the tax increases. 

Does a Roth Conversion Make Sense Next Year?

Courts Reject IRS Unreasonableness on Passive Losses

The Tax Court and the Court of Federal Claims in separate cases this month have held that LLC and LLP members are not automatically presumed to lack material participation.

IRS Changes Position on Reporting for Investments in Foreign Hedge Funds and Private Equity Funds

IRS “announces” major change in reporting rules on obscure conference call three weeks before filing deadline creating havoc and uncertainty for taxpayers. 

Plan Now to Take Advantage of the One Person 401(k) - Part 1 - Overview of the Strategy

One person 401(k) plans can provide extraordinary benefits to individuals with full-time positions and unrelated self employment income. 

Far Ranging Tax Proposals will Radically Alter Individual and Corporate Taxes

Proposed tax law changes will significantly increase taxes for individuals, families, and businesses beginning in 2011 and individuals dying on or after the date of enactment.

Get Your Tax Planning Started Now or Risk Significant Increases in Coming Years

Proposed tax law changes will significantly increase taxes for individuals, families, and businesses beginning in 2011 and individuals dying on or after the date of enactment.

Surviving an IRS Audit

If you are contacted for an IRS audit, you need to act immediately to resolve the matter. You should use a tax professional to level the playing field.

It's Not Too Late to Reduce Your 2008 Taxes: Establish a Simplified Employee Pension

Certain small business owners and self-employed individuals may reduce their 2008 taxes by establishing a SEP by the due date of their tax return, including extensions.

COBRA Provision Imposes New Burdens on Employers

COBRA provisions included in the 2009 Economic Stimulus Act will increase administrative burdens to the employer by requiring the employer recover the cost via a tax credit and requiring retroactive coverage. 

Individual Provisions Included in the 2009 Economic Stimulus Act

The individual provisions of the 2009 Economic Stimulus Act are too narrow and targeted to provide any measurable tax relief to middle-class two-wage-earner families. 

Business Provisions Included in 2009 Economic Stimulus Act

The 2009 Economic Stimulus Act primarily extends existing tax benefits and provides little or no stimulus for business. 

Senate Holds the Upper Hand - Comparison of Provisions

Expect a stimulus bill sometime this week (before Monday). 

Strategies for a Troubled Economy

You'll sleep better at night if you address the issues head on.   

House and Senate Stimulus Provisions Have Important Differences

Important differences exist between the House passed Stimulus Bill and Senate provisions working their way to a vote. 

Stimulus Bill Provides Few Business Incentives

Business tax provisions included in the new stimulus bill offer few incentives for business to expand. 

Six More Planning Ideas for Reducing 2008 Taxes After Year End

Earlier this week, we focused on six planning ideas that can be implemented after year end.  Here are six more strategies that can be used to reduce 2008 taxes even though we are well into 2009.  

Tax Planning Moves Still Possible After Year End for Businesses

Although year-end has passed, there are still a number of tax-saving moves a company can make to reduce its tax burden for 2008. 

Should I Accelerate My Capital Gains to 2008?

Will Obama and the Democratic Congress raise capital gains rates in 2009 thereby making it beneficial for me to accelerate capital gains to 2008?

The only way to be absolutely certain you will not be subject to a tax increase in 2009 on capital gains is to accelerate them to this year. At the same time, it seems clear that because the economy is in worse shape than originally thought, it is unlikely that President-elect Obama and the Democratic Congress will push through a capital gains tax increase in 2009. Based on recent statements made by close advisors, it appears there is support among them to simply let the Bush tax cuts expire at the end of 2010. That would mean no tax increases until 2011...

Hello - Welcome to TaxThink-Dispatches from the front lines of our tax system

Welcome to TaxThink.  We're glad you stopped by.  Our purpose is to discuss and explain serious tax topics in an offbeat and interesting manner.  Can't be done?  Maybe; but lets reach high.  Please stop back often to review the latest post, and if the mood strikes you, comment on the topic at hand.  Your comments and questions are welcome and I will do my best to address them as quickly as possible.  In the coming months, we'll also be adding interesting links to expand your knowledge...