taxpayer
5 Tips to Help Determine if your Social Security Benefits are Taxable
Many people may not realize the Social Security benefits they received in 2011 may be taxable. All Social Security recipients should receive a Form SSA-1099 from the Social Security Administration which shows the total amount of their benefits. You can … read more
4 Reasons to Choose Direct Deposit For Your Refund
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
Charitable Contributions through Loan Forgiveness
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
New Benefit for U.S. Persons Living in the UK
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
Making Charitable Contributions through Donor Advised Funds
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
Are Your Non-Cash Charitable Deductions Screaming, "Audit Me!"?
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
Section 1031 Like-Kind Exchanges – Why it Pays to Follow the Rules
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
Profit Motive or Hobby?
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
IRS' Second (and Last) Settlement Offer of Reduced Penalties for Offshore Tax Evaders – Part 2
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
IRS' Second (and Last) Settlement Offer of Reduced Penalties for Offshore Tax Evaders – Part 1
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