Judicial and administrative proceedings are temporarily suspended for those serving in the United States military. This includes a temporary hold on IRS collection actions. These laws are not provided in the Tax Code. Rather, they are set out in the Se…
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IRS Collections for U.S. Military Personnel
Military Tax Rights under the SCRA Judicial and administrative proceedings are temporarily suspended for those serving in the United States military. This includes a temporary hold on IRS collection actions. These laws are not provided in the Tax Code. Rather, they are set out in the Service members Civil Relief Act or SCRA. Military Tax… Continue reading IRS Collections for U.S. Military Personnel
Quotes: The IRS Does Not Have to Be Consistent
The post Quotes: The IRS Does Not Have to Be Consistent appeared first on Houston Tax Attorney: Texas Lawyer.
Material Participation Must Always Be Documented
The IRS frequently argues that losses are limited by the passive activity loss rules. This often turns on whether the taxpayer materially participated in the business or rental activity. The Hailstock v. Commissioner case shows that the IRS expects taxpayers to document their participation even when it seems clear that the tests are met. The[…]
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Unmarried Taxpayers Can Both Claim Mortgage Interest Deduction
In Voss v. Commissioner, 796 F.3d 1051 (9th Cir. 2015), the court addressed the rule that limits the deductibility of interest on home mortgages and home equity loans. This rule limits the amount of interest that can be deducted on mortgages in excess …
Unmarried Taxpayers Can Claim Mortgage Interest Deduction
Mortgage Interest Deductions for Unmarried Couples In Voss v. Commissioner, 796 F.3d 1051 (9th Cir. 2015), the court addressed the rule that limits the deductibility of interest on home mortgages and home equity loans. This rule limits the amount of interest that can be deducted on mortgages in excess of $1 million and home equity… Continue reading Unmarried Taxpayers Can Claim Mortgage Interest Deduction
Real Estate Professionals Are Subject to Material Participation Rules
Most individuals who invest in real estate to generate rental income hate the passive activity loss rules. These rules often prevent real estate investors from benefiting from the otherwise generous deductions that are associated with real estate. In G…
Real Estate Professionals Subject to Material Participation Rules
But can you be a real estate professional for the passive activity loss rules and then have your passive losses denied under the material participation rules? The Gragg v. United States, No. 14-16053 (9th Cir. 2016) case presents an opportunity to consider this fact pattern. The Facts & Procedural History The taxpayer was a real… Continue reading Real Estate Professionals Subject to Material Participation Rules
When the IRS’s Collection Efforts Create an Economic Hardship
The IRS has broad collection powers that it can bring to bear to collect unpaid taxes. Even though it has these powers, it often chooses not to use them. This is especially true in cases where the collection actions would result in an economic hardship for the taxpayer. What is an Economic Hardship?The term “economic hardship” is defined by when it occurs. It occurs if the IRS collection action results in the taxpayer not being able to pay his or her “reasonable basic living expenses.” The
TIGTA Review of the IRS’s Practices in Levying on Social Security Payments
The IRS has the power to levy on or take a taxpayer’s property. This includes nearly all property, including Social Security payments. The Treasury Inspector General for Tax Administration (TIGTA), the agency that audits the IRS, recently released a report that examined the IRS’s practices in levying on Social Security payments. Social Security Payments TIGTA’s[…]
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