A columnist for The New York Times believes that the objective of our tax policy should be to enforce equality of results rather than equality of opportunity. James B. Stewart is the latest in a long line of tax-the-richers who suggests that we should tax capital gains at the same rate we tax ordinary income: In the end, the [...]
Tags: Business Transactions · Gross Income · Politics of Taxes · Tax Policy · The Economy
WebCPA reports that the IRS has agreed with recommendations in a newly released government report urging the agency to increase its examinations of individual tax returns that report losses from rental real estate activity: The report, by the Treasury Inspector General for Tax Administration, was conducted because a Government Accountability Office report in August 2008 [...]
Tags: Business Transactions · Deductible Expenses · IRS Audits
CPA Charles J. Reichert writing for the Journal of Accountancy says that the Tax Court in James P. and Joan E. Kennedy v. Commissioner, TC Memo 2010-206 has ruled that in some cases a sale of business assets will generate ordinary rather than capital gain income (emphasis added): The Tax Court held that payments to a taxpayer from the sale [...]
Tags: Business Transactions · Court Cases
The Journal of Accountancy reports on a little known provision in the new Small Business Jobs Act: The… Act contained one provision that may have escaped the notice of taxpayers who own rental property, but will affect them starting in January. Under the provision, owners of property who receive rental income will be required to [...]
Tags: Business Transactions · IRS procedure
My favorite IRS person, Taxpayer Advocate Nina Olson has issued her annual report to Congress. In Fiscal Year 2011 Objectives, Olson euphemistically echoes what I and other tax bloggers have been saying more bluntly for months: The new 1099 reporting requirement is crazier than Sandra Bullock’s taste in men. Here’s the story from WebCPA (emphasis added): The report… expressed concern [...]
Tags: Business Transactions · IRS procedure · Taxpayer Advocate
The National Association for the Self-Employed reports that the recently enacted Healthcare law will have an onerous record-keeping effect on small businesses: Many of the nation’s entrepreneurs are about to become more familiar with IRS Form 1099. According to a new law set to go into effect in 2012, business owners will be required to submit a [...]
Tags: Business Transactions · C Corporations · IRS procedure · S Corporations · Self-Employed Taxpayers
I recently wrote in a post titled Tax Advice, Legal Advice & Piercing the Corporate Veil that it would be legal malpractice for an attorney to advise his corporate and business clients to commingle their personal and business funds. I wrote the post in response to June Walker who had written a blog post titled You Do [...]
Tags: Business Transactions · Taxes 101
