The Federal Income Tax laws are constantly changing. They change as a result of new legislation and they change as a result of the expiration of old legislation. Cinderella and the “Federal Godmother”: Some of the laws resulting from The “Economic Growth and Tax Relief Reconciliation Act of 2001” and the “Jobs an...
In the December, 2012 edition of Tax Law Explained, I summarized some of the key tax laws that would be affected by a failure of the Federal Government to reach a new set of tax laws and avoid the so-called “fiscal cliff”. As we now know, the world is still here (despite how some interpreted a Mayan calendar) and while we actu...
I have a number of clients who are current or former Major League Baseball players, coaches and managers. Even people who are not big sports fans find sports more interesting than the Income Tax Laws. There are some rare occasions where Income Tax Laws become interesting because of the interplay with professional athletes. ...
The Federal Income Tax laws are vast, complex and ever changing. This contributes to misunderstandings and errors. Here are a few common misconceptions relating to business expenses. Entertainment: A common misconception for a taxpayer is that entertaining a client, supplier or business associate (i.e. lunch, din...
IRC Section 1231 deals with gains and losses from the sale of property used in a trade or business as well as certain involuntary conversions. Section 1231 has been labeled as providing the “best of both worlds” for allowing net losses to be treated as “Ordinary Losses” and net gains to be treated as “Long-Term Capital Gain...
Many U.S. athletes had great success at the 2012 Summer Olympics in London. We all know that winning an Olympic medal means, well, one is physically presented with an Olympic medal (gold, silver or bronze) on the podium. The medals themselves have an economic value, albeit fairly low if determined based upon the actual amount of p...
Most Taxpayers are aware that the IRS has rules and regulations regarding filing tax Returns and paying taxes. Of course, if there are rules and regulations, it follows that there must be consequences for failing to comply. This is particularly important since, for the most part, the Federal Income Tax system is based upon Taxpayer�...
Every day, taxpayers get into trouble with the IRS. Some have violated the Federal Income Tax laws, some are “unjustly accused” and others are merely misunderstood. We rarely hear about them. However, we often hear about the famous and infamous. Here are just some of those people. Scarface: It is not possible...
Spring is in the air... and Taxpayers are scrambling to get their Federal, State and local income tax returns prepared and filed. Some are struggling to pay their income tax. Due Dates: Here are the key Income Tax Return deadlines for 2011 calendar year taxpayers (filing Returns and paying the taxes due): ...
Here are a few Income Tax issues to be aware of as we head into the filing season for 2011 Individual Income Tax Returns: Changes to Federal Individual Income Tax Returns (IRS Form 1040): Here is a non-exhaustive list of changes affecting the 2011 Federal Individual Income Tax Returns (Form 1040): Schedule D u...
