In a November 25, 2019 memorandum opinion by the Tax Court, a pro se taxpayer in the business of horse breeding for competitions and scaling down his business, was determined to be engaged in activities for profit within the meaning of Section 183 and thus allowed to deduct his expenses under Section 162. Petitioner, Lowell…
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As the race for the Democratic nomination for President heats up and the first primary election taking place in just 3 months, candidates have begun to release more details about their proposed tax plans. While these proposed plans will undoubtedly evolve and change over time and are of course subject to being passed by Congress,…
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In a recent release, the IRS announced the release of final regulations under IRC § 2010. The new final regulations largely adopt the previous proposed regulations published last November. The final regulations were released in Treasury Decision 9884 on November 22, 2019 and effective on and after November 26, 2019. I previously wrote about the…
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Parents are often in a position to help their children take advantage of business opportunities. A parent’s connections, business knowledge, expertise, and other intangibles acquired over may years of work can be used to benefit a child starting a career or business. Likewise, a parent may advance funds to a child to start or acquire…
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On October 28, 2019, the Tax Court released its opinion in Coal Property Holdings, LLC v. Comm’r, 153 T.C. No. 7 (2019). This case comes at a sensitive time of year where deadlines are looming in order to file conservation deeds to qualify for the deduction under Section 170(h), relating to qualified conservation contributions, for…
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The Tax Cut and Jobs Act (“TCJA”) enacted some sweeping changes to our nation’s tax laws. One major change was the modification of Section 2010 to increase in the individual estate tax exemption from $5M, indexed for inflation ($5.49M in 2017), to $10M, indexed for inflation ($11.2M in 2018, 11.4M in 2019). Thus couples went…
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On October 9, 2019, the Internal Revenue Service (“IRS”) released its latest buzzkill, Rev. Rul. 2019-24, answering questions involving hard forks of cryptocurrency, which, as explained more below, is where a new type of cryptocurrency is created and there is a permanent diversion from legacy currency or existing distributed ledger. In conjunction with the release…
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One of the more common engagements for our firm is to assist with business sales and acquisitions. This article is the fifth in a series of articles which will walk through and generally discuss the steps typically associated with the sale of a business. In Part 1, we discussed the breakdown of the business, the…
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In 2018, taxpayers enjoyed an increase in take-home pay as a result of revisions to the Internal Revenue Service (“IRS”) withholding tables that decreased the amount of federal income taxes withheld from their paychecks. The revisions to the withholding tables were made to reflect changes from the Tax Cuts and Jobs Act of 2017 (“TCJA”).…
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The Tax Court has just ruled against a CPA in a case involving income tax, self-employment tax, deductions for personal expenses, fraud, and other items. The CPA at issue, Al Benavides, had previously been criminally convicted for assisting a client in evading income tax liabilities. Although there are a number of substantive issues in the…
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