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...

Coinbase Accountholders Notified

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...