Can I deduct losses on my income tax return?
Losses are deductible up to the amount of "adjusted basis". However, individuals cannot deduct losses unless they are either: (1) incurred in a trade or business, (2) incurred in a transaction entered...
Tax Law
What is an offer in compromise (OIC)?
For tax years before 2006, you must be in full compliance will all filing and payment requirements before completing an application for OIC. This means that you must have had filed your returns on tim...
Extension of Time to Pay Federal Estate Tax
Can I receive an extension of time to pay the federal estate tax?...
What are the tax consequences of an early withdrawal from a Simple IRA?
A SIMPLE IRA, also known as a “Savings Incentive Match Plan for Employees” is most common among small employers who have less than 100 employees. When Congress created SIMPLE IRAs, it intentionall...
Consequences of Not Filing a Federal Personal Income Tax Return: Penalties and More
The consequences for not filing your taxes snowball as time passes. For instance, delaying your filing past April 15th will automatically result in a fine of either $100 dollars or 5 percent per month...
Are members of an LLC required to pay estimated tax and self-employment taxes on their share?
A single member LLC is viewed under the same conditions as a sole proprietorship for the purposes of taxes. LLC's with two or more members are viewed as a partnership. As with any business, the busine...
The Federal Estate Tax Marital Deduction
Can I avoid the tax by leaving everything to my spouse?...
Credits Against the Federal Estate Tax
Credits Against the Federal Estate Tax...
Property Included in the Calculation of the Federal Estate Tax
What property is counted to determine if my estate is subject to federal estate tax?...
Paying Medical Expenses or Tuition Costs Tax Free from Gift Tax
Can I pay someone's medical or education expenses and not be taxed for making a gift?...
Should I hire a tax attorney if I am facing an IRS audit? Is hiring an attorney expensive?
There are times when an attorney is necessary, but also many times when you can handle the problems yourself with a little patience and good records. The only time that it is truly necessary to hire a...
You Can Avoid Taxes, Just Don’t Evade or Outright Dodge Them
Tax avoidance is legal; tax evasion is not....
What is the tax basis on the sale of gifted property?
If the fair market value of the property at the time of the gift to you is less than its adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property. Your ...
What are the tax consequences of a forgiven loan made to a family member?
A family member who voluntarily forgives a loan over $14,000 is considered to be gifting the value of the loan to the recipient. There are no tax consequences to the borrower of the money if the lende...
Is it possible to reduce federal income taxes through gift-giving to family members?
Explanation of how to save income tax by giving income-producing property as a gift to family members....
Can abuse victims qualify for innocent spouse relief from having to pay delinquent income taxes?
Whether the the spousal abuse was physical or mental, they are both treated equally under IRS guidelines for determining if abused spouses can qualify for innocent spouse relief. In these situations, ...
What is innocent spouse relief?
The IRS has the power to release a spouse from direct financial liability for unpaid taxes. This release from responsibility from having to pay tax debts of the other spouse (or estranged spouse) is c...
When does it make sense to hire a tax attorney to negotiate an IRS Offer in Compromise?
There are some occasions where an attorney is not only useful, but invaluable in assisting you with your IRS offer in compromise negotiation. An attorney can aid in reinforcing your current financial ...
When should I hire a tax attorney to represent me in my IRS tax debt dispute?
While most negotiations with the IRS over your tax debt can be handled by the average American taxpayer, there are some instances where an attorney is both necessary and beneficial. If the IRS ignores...
What Causes an IRS Tax Audit
The IRS uses three techniques when selecting audits. The first technique is computer screening and random selection. The IRS sets up random numerical formulas to select a certain number of people for ...
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