Tax Court Disallows Rental Loss Deduction to Taxpayer Who Failed to Qualify as a Real Estate Professional

Feel free to rate this post
by clicking the appropriate star.

In our last post, we explained how an architect proved to the Tax Court that he qualified as a real estate professional, and was subsequently permitted to deduct passive activity losses from his real estate activities. Here, we focus on the attempt of another person to do the same --...

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

Feel free to rate this post
by clicking the appropriate star.

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 2017 Tax Cuts and Jobs Act – A Boon for the Commercial Real Estate Industry

Feel free to rate this post
by clicking the appropriate star.

The new tax law ( 2017 TCJA) is great news for the commercial real estate industry.  Owners of pass-through entities may deduct up to 20 percent of their business income on their tax return, subject to certain limits, and increased deductions for capital expenditures will shield income for property owners...

The 2018 IRS Dirty Dozen,
Part IV: Tax Return Preparer Fraud

Feel free to rate this post
by clicking the appropriate star.

Tax return preparer fraud gets its own place on the IRS Dirty Dozen nearly every year, but as noted in our previous blogs in this series, it is a key component of many of the tax scams on each year’s list. Always keep in mind that YOU are legally responsible...

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

Feel free to rate this post
by clicking the appropriate star.

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

Feel free to rate this post
by clicking the appropriate star.

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

Feel free to rate this post
by clicking the appropriate star.

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...

Coinbase Accountholders Notified

Feel free to rate this post
by clicking the appropriate star.

We recently blogged about a federal court judge ordering Coinbase to release information about certain Coinbase accountholders. On February 23, 2018, Coinbase sent messages to approximately 13,000 of its customers, informing them that information regarding their accounts will be provided to the IRS for tax information purposes in accordance with the...

The IRS Criminal Investigation Division Releases Its Annual Report for 2017

Feel free to rate this post
by clicking the appropriate star.

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”

Feel free to rate this post
by clicking the appropriate star.

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...