Tax Court Allows Rental Loss Deduction to Architect Who Qualified as Real Estate Professional

Investors are limited in their ability to offset income with passive losses, and even real estate investors who “actively participate” in their rentals (through management, capital improvements, selection of tenants, negotiation of leases, etc.) have a maximum $25,000 offset. However, 26 U.S. Code § 469(c)(7) provides special rules for real...

The 2018 IRS Dirty Dozen,
Part III: Abusive Tax Shelters, Offshore Tax Schemes, and Frivolous Tax Arguments

In this post we continue our coverage of tax evasion schemes with three that make it to the IRS Dirty Dozen list every year: Abusive tax shelters, offshore tax schemes, and frivolous tax arguments. More tax evasion schemes to watch out for Tax shelters and offshore bank accounts are two...

The 2018 IRS Dirty Dozen,
Part II: Padding Deductions, Claiming Undeserved Business Credits, Falsifying Income, Inflating Refunds

In our last post, we covered four schemes aimed at taking advantage of well-meaning taxpayers. The next four items on the IRS Dirty Dozen for this year involve illegal actions taken by taxpayers to either reduce their taxable income, or to claim deductions or credits to which they are not...

The 2018 IRS Dirty Dozen,
Part I: Identity Theft, Phone and Phishing Scams, Fake Charities

Every year, the IRS releases a list of 12 schemes that are especially popular during the tax season. This year’s “Dirty Dozen” includes three types of warnings: (1) Protect your personal information and your assets, (2) Don’t engage in tax avoidance or evasion schemes, and (3) Don’t waste the government’s...

The IRS Criminal Investigation Division Releases Its Annual Report for 2017

The purpose of the IRS Criminal Investigation (IRS CI) Division is to investigate criminal violations of the Internal Revenue Code and other related financial crimes to ensure compliance with the law and public confidence in our tax system. Every year, the IRS CI releases an annual report of the agency’s...

Maximize The Tax Benefit Of Charitable Donations Through “Bunching”

Congress may have intended to simplify tax filings by doubling the standard deduction to $12,000 (single) and $24,000 (married filing jointly), but for individuals who itemize and deduct their charitable contributions, the new tax law has made matters a bit more complicated. According to the IRS, a total of 36,624,000...