Bankruptcy can be one of the best methods for resolving tax debts. This is particularly true if the taxpayer’s primary assets only consist of retirement accounts and equity in a personal residence. The recent In re Moore, No. 15-42046 (Bankr. E.D. Tex. Jul. 7, 2016), case presents an opportunity to consider the results if the… Continue reading Discharging Taxes in Bankruptcy vs. Settling with the IRS
Tax Articles
Deducting Expenses for Your Hobby
Do you have a hobby that makes money, but costs more than it makes? If so, here is what you need to know before deducting the expenses on your tax return.Business expenses are generally required to be reported on Schedule C, Profit or Loss from Business. A net loss from Schedule C is carried over to Line 12 of the Form 1040, U.S. Individual Income Tax Return, and it reduces your adjusted gross income and taxable income. Expenses for a hobby are generally allowable up to the amount of income
Tax Deductions for Hobby Survives IRS Scrutiny
There are quite a few cases where the IRS disallowed loss deductions for “hobbies.” There are also quite a few cases where the courts have upheld the IRS’s position. These cases are decided based on the facts and how the courts interpret these facts. The facts in Main v. Commissioner, T.C. Memo. 2016-127, provide a […]
The post Tax Deductions for Hobby Survives IRS Scrutiny appeared first on Houston Tax Attorney: Texas Lawyer.
Tax Deductions for Hobby Survives IRS Scrutiny
There are quite a few cases where the IRS disallowed loss deductions for “hobbies.” There are also quite a few cases where the courts have upheld the IRS’s position. These cases are decided based on the facts and how the courts interpret these facts. The facts in Main v. Commissioner, T.C. Memo. 2016-127, provide a… Continue reading Tax Deductions for Hobby Survives IRS Scrutiny
How to Avoid the Estimated Tax Penalty
The IRS imposes penalties for a number of different types of conduct. Many of these penalties can be abated or removed based on reasonable cause. Reasonable cause refers to there being extenuating circumstances. The estimated tax penalty is different, as extenuating circumstances are largely irrelevant. This makes it even more important to pay estimated taxes and to do so timely. About Estimated Tax PaymentsYou are required to advance taxes as income is earned to avoid having a significant
Fines or Sanctions Paid to FINRA Are Not Deductible
In CCA 201623006 the IRS concluded that the payment of a fine or similar penalty to the Financial Industry Regulatory Authority (FINRA), a non-government entity, is not deductible as an ordinary and necessary business expense. The law is clear that fines and penalties paid to government entities for violation of the law are not deductible. […]
The post Fines or Sanctions Paid to FINRA Are Not Deductible appeared first on Houston Tax Attorney: Texas Lawyer.
Fines or Sanctions Paid to FINRA Are Not Deductible
In CCA 201623006 the IRS concluded that the payment of a fine or similar penalty to the Financial Industry Regulatory Authority (FINRA), a non-government entity, is not deductible as an ordinary and necessary business expense. Fines & Penalties Non-Deductible ..WHY?? The law is clear that fines and penalties paid to government entities for violation of… Continue reading Fines or Sanctions Paid to FINRA Are Not Deductible
Federal Trade Commission Warnings About Tax Relief Companies
There have been a number of bad actors in the tax resolution industry. One only has to do a cursory search of the internet to find consumer complaints about tax relief companies that do this work. The Federal Trade Commission (FTC) has an article on its website that warns consumers about these bad actors. The […]
The post Federal Trade Commission Warnings About Tax Relief Companies appeared first on Houston Tax Attorney: Texas Lawyer.
Federal Trade Commission Warnings About Tax Relief Companies
There have been a number of bad actors in the tax resolution industry. One only has to do a cursory search of the internet to find consumer complaints about tax relief companies that do this work. The Federal Trade Commission (FTC) has an article on its website that warns consumers about these bad actors. The… Continue reading Federal Trade Commission Warnings About Tax Relief Companies
The FTC Warns Taxpayers About Tax Relief Companies
The Federal Trade Commission (FTC) is the nation’s consumer protection agency. It works to prevent fraudulent, deceptive and unfair business practices in the marketplace. It weighed in on the tax relief companies in an article posted on its website. Taxpayers should consider the FTC’s warnings before hiring a tax relief company. The FTC describes some of the unscrupulous practices employed by tax relief companies. These practices include: Charging a flat rate for the work of all employees