Overlooking the minor detail that you have given the federal government a tax free loan for 2011, you are so excited to be getting a refund on your 2011 individual income tax return. And it is always better to receive … read more
During a recent Internal Revenue Service examination, the agent questioned the deductibility as a charitable contribution the amount of a loan that the taxpayer forgave to a charitable organization. In fact, the agent indicated that he had discussed the issue … read more
Pursuant to Revenue Ruling 2011-19, the IRS confirmed that the UK remittance based charge is eligible for a foreign tax credit in the US. A taxpayer wishing to have the U.S. tax offset must comply with all other aspects of … read more
Donor advised funds allow a taxpayer to put money in diversified investments, take an immediate charitable deduction and recommend where grants should go later. Mutual funds, such as Vanguard and Fidelity, local community foundations, universities and other organizations operate such … read more
During a past tax season, I reviewed a return for an executive who wanted to take a non-cash charitable deduction for his business suits. Since it was years ago, I do not recall the amount he valued the suits at, … read more
A taxpayer will generally recognize gain or loss upon the sale or exchange of property. However, gain or loss is not recognized under IRC §1031 on an exchange of property if: • the taxpayer exchanges property held for productive use in … read more
It is common to have a business where the owner has a passion and commitment for what he or she does. Isn’t that what drives most of us to become business owners in the first place? It’s just too bad … read more
The penalties under OVDI are higher than the original disclosure initiative announced in 2009. The 25% penalty can be mitigated under certain circumstances. It is reduced to 12.5% if the taxpayer’s highest aggregate account balance or assets was less than … read more
On February 8, 2011, the IRS announced a second special voluntary disclosure initiative called the 2011 Offshore Voluntary Disclosure Initiative (OVDI) which will be available through Aug. 31, 2011. It will give taxpayers with undisclosed income from hidden offshore accounts … read more
There is nothing more complex than the world of taxes. We know this and yet we chose careers where we face these issues everyday. We get questions day in and day out about new tax laws, forms and news items and how they affect everyday people and businesses. Well, here at Henry & Horne, LLP we have set out to do what we do best; help everyday people understand what is going on in the world of state, local, federal, estate and international taxation. We will provide these weekly posts and we encourage you to give us feedback on those posts as well as letting us know what else you would like to know more about. Welcome to "Tax Insights." We hope you find this blog informative and worthy of your time.
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