Tax shelters offered high income taxpayers an easy way to reduce and even eliminate federal income taxes at the individual level. The growing tax avoidance schemes, many questionable in nature, threatened to collapse the U.S. tax system. Hence the need for tax reform and the Economic Recovery Tax Act of 1981 (ERTA). New rules cannot keep a tax professional down. Real estate was once again the favorite tool for reducing taxes. Enter cost segregation. Couple that with bonus depreciation and the automatic change of accounting method using Form 3115 , and you have a recipe for serious tax reduction. The tax shelters of the 1970s were often questionable. Cost segregation is still a valid way to accelerate deductions for income property owners. But none of that compares to the tax benefits available under the Inflation Reduction Act of 2022 (the IRA).
Thanks to the Inflation Reduction Act of 2022, the federal government is giving out tens of billions of dollars in tax credits to incentivize taxpayers to purchase electric vehicles. As with any government program, claiming the benefits can be complicated. Since Congress used tax credits to deliver the program, and the personal tax credits are income-limited, tax planning can help a taxpayer who would otherwise not qualify for these benefits. This article will briefly overview the two personal electric vehicle tax credits, followed by several tax planning strategies to unlock these credits for taxpayers who may not otherwise qualify.READ MORE
Small Biz Faces a Huge New Reporting Reg Next Year
Regulatory tsunamis come in batches. By now, for example, most of you have heard about the tax-reporting requirement slated to kick in next year, where the IRS would've learned about the income of individual taxpayers who made just $600 on the likes of eBay. That sounded like a looming nightmare -- until the IRS suddenly put it off a year two days before Thanksgiving. (Sometimes removing tax regulations without warning creates as much confusion as adding them.) Small businesses aren’t off the regulatory hook that easily for 2024. Come January 1, a new ownership-reporting requirement begins for millions of American companies. Now’s the time to prepare yourself and your company.Read More
Appeal Of Collection Due Process Hearing Wipes Out Most of Liability
Joseph Michael Balint had some really hard luck. He was in prison in Florida from December 17, 2013, through January 6, 2015. Fearful of forfeiting assets, he transferred everything to his wife, Jacqueline, and gave her power of attorney early in his prison term. What he had not planned on was her emptying the retirement accounts and leaving him with the tax tab. His luck turned a bit in Tax Court, as we shall see.Read More
TAX COURT ROUNDUP – DECEMBER 2023
Despite the five days off for the two Federal holidays this month, there's plenty from Tax Court, for both specialists and general practitioners. No other Court gets as deep into the "wrinkled skin" of US tax law. As always, there's something for (almost) everyone.Read More