I'm new here, but I know enough not to try to do what everyone else does. I won't try to cover the wider tax picture. I cover United States Tax Court on my blog, so here's a brief round-up on what went on in Tax Court during the last month that I think is of interest to the tax planner and practitioner...

Join nationally recognized speaker and educator Matt Metras, EA, as he guides you through the ins and outs of mining, staking, forks, airdrops, DeFi swaps, yield farming, liquidity pools, NFTs, and more. With little guidance in these areas, you'll learn how to apply existing code sections to cryptocurrency situations, with a focus on finding tax-saving opportunities. We'll also cover how to extract transactions from the blockchain and introduce you to a number of helpful tools. This two-hour course is packed with valuable information, but it’s more than just information - we're also offering continuing education credits to qualifying attendees, courtesy of the American Institute of Certified Tax Planners.

As a financial expert, I know that 2022 has been a roller coaster year for investors. With only days left in the year, the Dow is down and the S&P 500 is down . On the high-risk crypto side, Bitcoin has fallen 64 percent and former Top 10 coin Solana has fallen more than 92 percent thanks to Sam Bankman-Fried and FTX. While the markets may be down, taxpayers can still come out ahead through careful tax planning. By taking the time to assess your financial situation and make strategic decisions, you can minimize their tax burden and potentially save money. It's important to consult with a tax planning professional to ensure that you’re taking advantage of all available tax savings opportunities. Here are a few of the things to do before the clock strikes midnight on New Year’s Eve.

The Inflation Reduction Act has brought back and revised credits we have seen before. One of these credits had a $500 lifetime value but now can be $1,200 for each eligible tax year. That is a potential $11,500 increase in savings for your clients. They do not have to build a new house to take advantage of these savings. Taxpayers can receive this credit for improvements made to their home. The tax savings do not stop there. If your client buys an electric vehicle, they are going to need somewhere to charge it, right? Well, the Inflation Reduction Act has considered that, too. Homeowners can save an extra $1,000 on their taxes by installing the charging equipment at home. Let's explore how you can help your non-business clients capitalize on these types of tax savings on these improved energy credits. We will look at both credits now.

As a proactive client, you often ask your tax professional about the tax effects of taking distributions from your retirement accounts. Unfortunately, it seems that proactive clients are in the minority. More often, your tax professional only learns about your retirement account distribution when the Form 1099-R arrives with your other tax documents. Proactive tax planners can improve their tax savings strategies by asking the when, where, and why that can help reduce negative tax consequences and can make you look like a problem-solving rock star to your clients. Whether you are looking for proactive ideas to implement on your own, or you want to be a problem-solving rock star with your tax planning clients, keep reading to learn how to make smart retirement account distributions.

We are creeping up to the centennial of the Cohan rule. Learned Hand’s opinion for the Second Circuit in Cohan v. Commissioner came out on March 3, 1930 . I love this rule so much that I've made it the Prime Directive in my own book, Reilly’s Laws of Tax Planning: “If you don’t have documentation, at least have a plausible story.” However, subsequent legislation, changes in societal expectations, and the passage of time have eroded the usefulness of the Cohan rule for taxpayers. In recent years, there have been more instances of courts refusing to apply it than allowing its use. That’s why in Reilly’s Sixteenth Law of Tax Planning, I advise people to “being right without substantiation can be as bad as being wrong.”

When United States Tax Court Judge Paris issued the opinion in the case of Ryan Fleischer in 2016 , it caused quite a stir in the tax blogosphere. And from what I have been able to gather off the record it remains of interest. The Fleischer decision makes it very difficult, if not impossible for some financial professionals to use S corporations to mitigate self-employment tax. Rather than attack on reasonable salary, the IRS took an assignment of income approach, which succeeded throwing planners for financial professionals like Fleischer into a bit of an uproar...

Your clients may think that business owners get all the tax breaks and incentives. But that’s not quite true. We see that with the expansion of clean energy tax credits in the Inflation Reduction Act. One of the goals of the Inflation Reduction Act is to address climate change. The bill does this by helping taxpayers save green for using green energy. Taxpayers can not only enjoy tax benefits from riding clean the next 10 years. Your environmentally conscious clients can also reduce their tax bill as they make clean energy changes to their home. What client do you have right now that would enjoy claiming 30% of the costs of their home improvements for a tax credit? Not sure? Well get your pen and paper to make a list while we go over how this new credit can save them this tax year until 2034.