Is a real estate agent a real estate professional? This is an important question if the real estate agent also owns rental real estate that throws off tax losses. The answer dictates whether real estate agents are able to deduct rental losses against non-rental income. The court addresses this question in Agarwal v. Commissioner, T.C.… Continue reading Rental Losses for Real Estate Agents
Category: Federal Income Tax
Federal income tax advice, articles, tips, & more.
The Federal income tax is the largest expenditure for most individuals and businesses. It dwarfs the costs for insurance and basic necessities. This is only going to increase in the future. Tax planning is needed.
This page provides timely and thorough coverage of various Federal income tax law questions, court cases, and rulings.
If you need help with a Federal income tax matter, we can probably help. We help clients minimize their Federal income tax liabilities. Please call our tax attorneys to see how we can help.
If you are looking for an article on a particular topic, you can select one of the following options to sort and limit the articles provided below.
Refunds After Innocent Spouse Relief Granted
If a taxpayer pays the couple’s income taxes and is then granted innocent spouse relief for the liability, is the innocent spouse entitled to a refund of the amount paid? The 9th Circuit Court of Appeals addressed this in Orlock v. Commissioner. Facts & Procedural History The IRS granted the wife innocent spouse relief. Prior to… Continue reading Refunds After Innocent Spouse Relief Granted
Qui Tam Settlements and the Tax Benefit Rule
What Is A Qui Tam ? A qui tam claim involves a lawsuit where a private citizen helps the government prosecute fraud perpetrated against the government. These claims are often filed by employees or former employees who know of wrongdoing by an employer. These are often whistleblower claims. In exchange for helping to prosecute the… Continue reading Qui Tam Settlements and the Tax Benefit Rule
IRS Details the Federal Income Tax Consequences of Gift Cards
If an accrual method taxpayer issues a gift card, does the taxpayer have to recognize taxable income at the time that the card is sold or when the card is redeemed? The IRS Office of Chief Counsel recently issued a legal memorandum that addresses this question. According to the IRS attorneys, taxpayers who issue gift… Continue reading IRS Details the Federal Income Tax Consequences of Gift Cards
Tax Disputes Involving Alimony Payments
If payments qualify as alimony pursuant to federal tax law, the payments may be tax deductible by the payor spouse and included in gross income to the payee spouse. The opposite is true if the amounts are not alimony for federal tax law. Whether an expense counts as alimony is frequently the subject of disputes… Continue reading Tax Disputes Involving Alimony Payments
IRS Recognizes Employee Tool and Equipment Plans
The IRS recently issued a Coordinated Issue Paper that sets out its view of what constitutes an acceptable Employee Tool and Equipment Plan. What Is Employee Tool & Equipment Plan ? An Employee Tool and Equipment Plan is an agreement between an employer and one or more of its employees to reimburse the employee for the… Continue reading IRS Recognizes Employee Tool and Equipment Plans
The Private Trust Company
The IRS recently released Notice 2008-63 in advance of a formal Revenue Ruling. This Notice provides guidance on the federal tax implications of private trust companies and similar trust arrangements. Notice 2008-63 confirms that private trust companies generally do not result in any estate, gift, or generation skipping tax benefits that could not be realized… Continue reading The Private Trust Company
Tax Issues Faced by Pilots & Transportation Employees
Where a taxpayer is located when he incurs expenses and receives income can have significant tax implications. This can raise a number of difficult tax issues. This is especially true for pilots and other interstate transportation employees. The recent tax court case, Tucker v. Commissioner, T.C. Summary Opinion 2008-78, highlights a few of these difficulties.… Continue reading Tax Issues Faced by Pilots & Transportation Employees
Innocent Spouse Relief for Ex-Spouse’s Income
Innocent spouse relief can provide a much-needed remedy for divorced or separated taxpayers who filed a joint income tax return. This relief is commonly granted where the income that gave rise to the tax liability was earned by one spouse. The recent Mapp v. Commissioner, T.C. Summary Opinion 2008-76, case provides an opportunity to consider these… Continue reading Innocent Spouse Relief for Ex-Spouse’s Income
A Smattering of Tax Measure Legislation
It is always interesting to review what tax measures the Legislature is or has been considering. Here are a few of the tax measures that are or were being considered: Lifetime learning accounts. Amends the Internal Revenue Code to: (1) establish a tax-exempt lifelong learning account for the payment of certain employee higher education and training expenses;… Continue reading A Smattering of Tax Measure Legislation